(Corrects May 15 story to remove reference to Charan Singh being the chairman of SelectQuote in paragraph 9)
May 15 (Reuters) - SelectQuote Inc said on Friday it was looking to raise about $342 million in an initial public offering that could value the owner of the insurance policy comparison website at more than $3 billion.
The company will offer about 18 million shares at between $17 and $19 per share, with selling stockholders offering another 7 million shares, taking the overall amount expected to be raised to about $475 million.
Overland Park, Kansas-based SelectQuote allows consumers to compare insurance policies for life, auto and home insurance from providers including American International Group, Prudential Financial Inc and Liberty Mutual.
While using websites to compare and buy insurance products is commonplace around the world, the U.S. insurance industry has been slower to embrace technology as means of bypassing traditional insurance brokers.
SelectQuote's IPO filing comes as the COVID-19 pandemic is expected to lower rates for many insurance lines, giving policyholders the opportunity to switch insurers at their next renewal.
For the year 2019, SelectQuote's net income more than doubled to $72.6 million from a year earlier. In the same period, its revenue jumped 44% to $337.5 million. (https://bit.ly/360XxwZ)
Credit Suisse, Morgan Stanley, Evercore ISI and RBC Capital Markets were among the lead underwriters for the offering.
Entities Associated with Brookside Equity Partners owned around 22% of the company before the offering, SelectQuote said in a filing.
SelectQuote was founded in 1985 by Charan Singh. Tim Danker has been chief executive officer of SelectQuote since 2017, according to the company's website. (Reporting by Abhishek Manikandan in Bengaluru; Editing by Shinjini Ganguli)