GWG Holdings, which holds a portfolio of life insurance policies worth over $250 million, lowered the proposed deal size for its upcoming IPO on Friday and replaced its sole bookrunner. The Minneapolis, MN-based company now plans to raise $12.5 million by offering 1 million shares at a price range of $11.50 to $13.50. The IPO is now being handled on a best efforts basis.
The company had previously filed to offer 1.6 million shares the same range. At the midpoint of the revised range, GWG Holdings will raise -38% less in proceeds than previously anticipated and command a fully diluted market value of $76 million, a 32% decrease.
GWG Holdings, which was founded in 2006 and booked $30 million in revenue for the 12 months ended March 31, 2014, plans to list on the NASDAQ under the symbol GWGH. Newport Coast Securities is now the sole bookrunner on the deal. It is expected to price during the week of August 18, 2014.
