MediaAlpha sets IPO terms, as company and shareholders look to sell $185 million worth of shares

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MediaAlpha Inc. has set terms of its initial public offering, as the Los Angeles-based insurance broker looks to raise up to $125.2 million. The company disclosed Tuesday that it is offering 6,258,502 shares of Class A common stock in the IPO, while selling shareholders are offering an additional 2,991,498 shares valued at up to $59.8 million. The IPO is expected to price between $18 and $20 a share. After the IPO, there is expected to be 32.44 million Class A shares and 26.31 million Class B shares outstanding; both classes of stock will have one vote per share. J.P. Morgan, Citigroup, Credit Suisse, RBC Capital Markets, Canaccord Genuity and William Blair are the joint bookrunners of the IPO. The stock is expected to list on the New York Stock Exchange under the ticker symbol “MAX.” For the three months ended Sept. 30, the company estimates net income of $21.3 million to $21.6 million on revenue of $148.5 million to $151.1 million, after net income of $18.7 million on revenue of $110.4 million in the same period a year ago. The company is looking to go public at a time that the Renaissance IPO ETF has rallied 26.6% over the past three months while the S&P 500 has gained 6.2%.
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