Invest in IPO SelectQuote
SelectQuote contracts with numerous insurance carriers to sell senior health, life and auto and home insurance policies by various channels to individuals throughout the United States through the use of multi-channel marketing and advertising campaigns.
SelectQuote was founded in 1985 in San Francisco Bay Area, US. The company generates commission revenue from selling policies on behalf of insurance carrier partners.
The proprietary technology allows SelectQuote to take a broad funnel approach to marketing by analyzing and identifying high quality consumer leads sourced from a wide variety of online and offline marketing channels. The primary sources of leads include search engine marketing, radio, television, and third-party marketing partners.
According to IBISWorld, the market for online insurance brokering in the U.S. is estimated to rise to $18.1 billion by 2024. This represents a forecast 9.3% from 2019 to 2024.
The rising likelihood of consumers and businesses to complete their insurance transactions over the internet has continued to drive revenue for the Online Insurance Brokers industry. Additionally, disposable income growth will also add to consumer demand as will increased awareness of efficiencies to be gained by buyers and sellers operating in an online environment.
The company has never generated revenue from product sales and may never be profitable.
SelectQuote business may be harmed if the company loses relationships with insurance carrier partners or fail to develop new insurance carrier relationships. The company currently depends on a small group of insurance carrier partners for a substantial portion of its business. As of March 2020 carriers owned by UnitedHealthcare, Humana and Aetna accounted for 27%, 19% and 13% of the total revenue, respectively. Government regulation in the health insurance market may change in response to the COVID-19 pandemic, which may have an adverse effect on the business.
The company’s financials show strong revenue growth and net profit growth but reflect a negative cash flow from operations. SLQT intends to use proceeds from an IPO to pay down debt, provide capital to selling shareholders and have some left over for its growth initiatives.
For the nine month period ended in March 2020, SelectQuote earned $390.1 million of revenue representing 48.3% growth over the $263.1 million of revenue that the company earned in 2019. Net income increased 2.4% from $59.7 million for the nine month period ended March 31, 2019 to $61.1 million for the nine month period ended March 31, 2020.
SLQT plans to raise $450M during an IPO at $3B valuation. Given strong financial results along with prospective market, we estimate that SLQT market cap after an IPO will be $B. The expected return on investment is 40%. sign.
2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.
We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».
The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.
After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.
Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.
From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.
The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.
3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.
1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.
20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.
TO EARLY EXIT
Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.
Our risk managers ensure proper support throughout the entire transaction. Moreover, you may call them on +7 495 646-15-57 or 8 800 333-66-81 or visit our office, if a more detailed discussion is needed.
IN THE PROFIT FROM THE FIRST DAY
Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.
LOW ENTRY THRESHOLD
Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.