Accelerant IPO: trading in shares of the platform for insurers and investors has started

Preliminary trading in shares of insurance platform Accelerant Holdings, in which co-owner of Chelsea soccer club Todd Bowley invested, started on July 24 in the system for Freedom clients. The securities are available by ticker symbol ARX. They will appear on the New York Stock Exchange later Thursday.

Accelerant and its shareholders raised $723.7 million in its NYSE IPO.Together, they offered 34.46 million shares at $21, though they had originally hoped to sell 28.9 million securities at $18 to $20. According to word sources at analytics platform Smartkarma, demand exceeded supply by more than 10 times with active participation from large mutual funds. Accelerant will trade on the New York Stock Exchange under the ticker ARX.

Including the increased price and the increased size of the offering, Accelerant's capitalization was about $4.7 billion, Bloomberg calculated.

Morgan Stanley and Goldman Sachs acted as lead organizers of the IPO Morgan Stanley and Goldman Sachs. BMO Capital Markets, RBC, Wells Fargo, Piper Sandler, William Blair, Raymond James and TD Securities also participated in the listing.

Accelerant is a next-generation insurance company that helps corporate clients launch and sell insurance products. It operates as a technology platform that connects insurers with investors willing to fund insurance programs to earn premiums. As a result, insurers reduce their risks, investment funds receive a steady income, and Accelerant receives a commission. In addition to running an insurance marketplace platform, Accelerant also self-insures risks and has a reinsurance division, noted IFR.

"There is no direct analog to [Accelerant]. The closest is Lloyd's, but Lloyd's is not a public company, is growing slower and is not using technology to the same extent," said IFR one of the bankers involved in the offering. He said most investors compare Accelerant to Ryan Specialty because of "similarities in insurance ecosystems and sales channels".  

The company was founded in 2018 and had a $2.4 billion valuation at its 2023 investment round. According to data Bloomberg, Accelerant's majority shareholder is investment fund Altamont Capital Partners; it will retain a controlling stake after the offering. Barings and Eldridge Industries of Chelsea co-owner Todd Bowley have also invested in the company.

Accelerant's revenue for the first quarter of 2025 reached $178 million, up 39% relative to the same period in 2024. Net income rose to $7.8 million versus $2.1 million in the first quarter of last year. 

The main risks for Accelerant Holdings are a possible downgrade of its financial strength rating, which could cause the company to lose some customers, and increased competition from other insurance companies, which could reduce its market share, Freedom Broker analyst Alem Bektemirov wrote. At the company's mid-market valuation, its fair value, including debt and available funds on its books, is $5.1 billion, or $23.14 per share, he calculated. This implies a potential upside of 10.2% above the offering price.

Accelerant counts on a valuation corresponding to a price-to-EBITDA ratio of around 20, with a 2026 forecast of around 15 (mid-teens). Such benchmarks are considered quite ambitious, notes Smartkarma. In comparison, Ryan Specialty shares are trading at multiples of 20.9 and 17.6 respectively, reports IFR citing LSEG data.

AM Best, the largest rating agency in the insurance industry, in June 2025 affirmed the credit ratings of Accelerant's North American and European subsidiaries at A- (Excellent) with a stable outlook. The assessment reflects the group's consolidated financial strength, which AM Best considers very strong, as well as its "adequate" operating results, limited business profile and prudent approach to risk management.

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Freedom clients will be able to get access to Accelerant shares before the opening of the main exchange session. Trading will begin in the early pre-market format 2-3 hours before the opening of the US exchanges (from 15:30-16:30 Astana time). To participate, click on the ticker ARX.US

This article was AI-translated and verified by a human editor