Ebix stock surges 25% after Indian subsidiary files prospectus for $787M IPO

Mar. 10, 2022 11:35 AM ETEbix, Inc. (EBIX)By: Max Gottlich, SA News Editor30 Comments

IPO Initial Public Offering 3d concept

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  • Application software firm Ebix (NASDAQ:EBIX) stock jumped as much as 35% in early trading, Thursday, after its Indian subsidiary filed a draft red herring prospectus with the Securities and Exchange Board of India on Wednesday for an initial public offering aggregating up to INR 60B or $787M.
  • Shares of EBIX have since pulled back to roughly $40 per share, though still elevated by 25%.
  • EbixCash will use approximately $350M of the IPO proceeds for the purchase of outstanding compulsorily convertible debentures from Ebix Asia Holdings, Mauritius and in turn payment to Ebix. ~$130M would be used for working capital requirements of EbixCash and its subsidiaries. And the remaining proceeds would be used toward acquisitions and other investments.
  • On Wednesday, Ebix reported Q4 EPS of $0.66 and revenue of $266.83M.
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