PE-backed annuity service provider Athene jumps in IPO debut: Reuters

Shares of Athene Holding Ltd (ATH.N) jumped as much as 9.2 percent in their debut on Friday, valuing the fixed annuity service provider at about US$8.25 billion in the year’s largest financial IPO.

The stock rose to a high of US$43.69 in early trading.

Bermuda-based Athene, which is backed by U.S. private equity firm Apollo Global Management LLC, said on Thursday that 27 million class A shares had been priced at US$40 each.

The offering raised about US$1.08 billion, all for selling shareholders including the Teacher Retirement System of Texas and Procific, a unit of the Abu Dhabi Investment Authority.

Athene, founded in 2009 to buy assets from insurers battered by the financial crisis, now issues, re-insures and buys retirement savings products for people and institutions.

Athene’s IPO, which was expected to be priced at between US$38 and US$42 per share, could capitalize on the post U.S. election rally of global financial stocks.

The company has said its relationship with Apollo gives it access to the firm’s investment professionals and sprawling asset management infrastructure.

Athene’s revenue fell 36.2 percent to US$2.62 billion in the year ended Dec. 31, 2015. Its net income attributable to shareholders rose 21.4 percent to US$562 million.

Goldman Sachs & Co, Barclays, Citigroup and Wells Fargo Securities were among the underwriters of the offering.

Update: Athene’s investors include Ontario Teachers’ Pension Plan.

(Reporting by Richa Naidu in Bengaluru; Editing by Savio D’Souza)

(This story has been edited by Kirk Falconer, editor of PE Hub Canada)

Photo courtesy of Reuters/Chip East