NEW YORK (Reuters) – Patriot Risk Management Inc, which underwrites and administers workers’ compensation insurance cut the estimated value of its initial public offering by 9.3 percent on Friday, according to a regulatory filing.
The company, which also provides claims services, lowered its estimated IPO price, but raised the number of shares it is selling. The company said it now plans to sell 21.2 million shares for $8 each, raising about $169.6 million.
Patriot Risk Management earlier planned to sell 17 million shares for $10 to $12 each, according to a filing with the U.S. Securities and Exchange Commission.
A spokesman for underwriter FBR Capital Markets declined to say when Patriot Risk Management might attempt price the IPO, which had been on the schedule for this week.
The IPO market has proved tricky of late as investors shy away from unproven companies and weak financials amid an unsteady overall equities market, leading many companies to postpone or cancel their IPOs or settle for lower proceeds.
Separately, CapitalSource Healthcare REIT, a real estate investment trust that sought as much as $345 million to invest in skilled nursing facilities in the United States, withdrew its IPO plans on Friday, according to a filing.
That IPO was managed by Banc of America Securities LLC, Citi and Deutsche Bank Securities.
Patriot reported total revenue of $40.4 million in the nine months ended Sept. 30, up 5.7 percent from the same period a year earlier. Its net income nearly quadrupled to $2.4 million.
The company said it would use net proceeds of about $160.3 million to support its premium writings and to buy property and casualty insurer PF&C.
FBR Capital Markets and the other underwriters on the Patriot Risk IPO will have the option to purchase an additional 3.18 million shares.