Sequoia, Accel-backed Ethos Applied sciences seeks $1.3 billion valuation in US IPO
By Arasu Kannagi Basil
Jan 20 (Reuters) – Ethos Applied sciences, backed by enterprise capital companies Accel and Sequoia, stated on Tuesday it was focusing on a valuation of as much as $1.26 billion in its U.S. preliminary public providing, as a surge in insurance coverage firm listings extends into 2026.
First-time share gross sales from insurance coverage companies hit a 20-year excessive on Wall Road final 12 months as buyers flocked to companies insulated from U.S. President Donald Trump’s commerce battle.
The life insurance coverage know-how firm and a few of its backers are in search of as much as $210.5 million by promoting 10.5 million shares priced between $18 and $20 apiece.
Ethos is providing 5.1 million shares, whereas shareholders comparable to Alphabet’s enterprise capital arm GV and Normal Catalyst are promoting 5.4 million shares.
The 2026 IPO market is anticipated to shake off a comparatively quiet begin as corporations that postponed listings final 12 months amid a historic U.S. authorities shutdown return to the fray.
“The primary few weeks could also be a bit quieter than we anticipated, nevertheless it’s common to see corporations wish to look forward to others to check the waters,” stated Matt Kennedy, senior strategist at Renaissance Capital, a supplier of IPO-focused analysis and ETFs.
“It seems like everybody’s lined up initially of a race, ready for the gun to fireside.”
Based in 2016, Ethos provides life insurance coverage to households throughout the U.S by its digital platform.
The corporate posted a $46.6 million revenue on income of $277.5 million within the 9 months ended September 30, up from a revenue of $39.3 million on income of $188.4 million a 12 months earlier.
In 2021, the corporate had raised $100 million from Japanese conglomerate SoftBank at a $2.7 billion valuation.
Goldman Sachs and J.P. Morgan are the lead book-running managers for the IPO. Ethos will checklist on the Nasdaq underneath the image “LIFE.”
(Reporting by Arasu Kannagi Basil in Bengaluru; Modifying by Vijay Kishore and Sahal Muhammed)
