HCI Group closes public offering, raising $85 million

Florida-based HCI Group, Inc. has closed the underwritten public offering of 1,150,000 shares of its common stock at $78 per share, before underwriting discounts and commissions.

HCI confirms that this includes the underwriters’ option to purchase up to an additional 150,000 shares of common stock in the offering, which was fully exercised.

This has led to additional net proceeds to the company of approximately $11.1 million, after deducting underwriting discounts and commissions and estimated offering expenses.

Total net proceeds to the company were approximately $85 million from the offering, after deducting underwriting discounts and commissions, and estimated offering expenses.

HCI Group intends to use the net proceeds, including those received in connection with the exercise of the underwriters’ option, for general corporate purposes, including the continued assumption of Citizens Property Insurance Corporation policies.

In November, the largest subsidiary of HCI Group, Homeowners Choice Property & Casualty Insurance Company, successfully assumed approximately 53,750 policies from Citizens Property Insurance Corporation, Florida’s state-backed insurer.

JMP Securities, a Citizens Company, acted as lead book-running manager for the offering, and Truist Securities acted as joint book-running manager. Oppenheimer & Co. acted as book-running manager.

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