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Apollo-backed annuity service provider Athene jumps in IPO debut
December 9, 2016 / 3:43 PM / 8 months ago

Apollo-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 $8.25 billion in the year's largest financial IPO.

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

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

The offering raised about $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, reinsures and buys retirement savings products for people and institutions.

Athene's IPO, which was expected to be priced at between $38 and $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 $2.62 billion in the year ended Dec. 31, 2015. Its net income attributable to shareholders rose 21.4 percent to $562 million.

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

Reporting by Richa Naidu in Bengaluru; Editing by Savio D'Souza

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