The reinsurance arm of Third Point, the hedge fund run by Daniel S. Loeb, disclosed on Monday that it is seeking to raise up to $370.6 million from its forthcoming initial public offering.
Third Point Reinsurance said in an amended prospectus that it plans to sell 22.2 million shares at between $12.50 and $14.50 a share. At the midpoint of that range, the reinsurer would be valued at nearly $1.4 billion.
That shows quick growth for the operation, which was created in October 2011 with $784.3 million worth of equity. Third Point dove into the world of reinsurance â€" in which firms essentially backstop insurance firms’ operations â€" at a time when other hedge funds were setting up beach heads in the sector. SAC Capital, the firm run by Steven A. Cohen, has set up a similar operation, while Greenlight Capital, the hedge fund founded by David Einhorn, has had a reinsurance unit since 2004. (The latter has been public since 2007, and its stock has gone up 10 percent during that time period.)
In its prospectus, Third Point Reinsurance said that it plans to use its cut of the I.P.O. proceeds for both general corporate purposes and to increase its underwriting and investment capacity.
The offering is being led by JPMorgan Chase, Credit Suisse and Morgan Stanley.
