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Lincoln company debuts with IPO on Nasdaq

Lincoln company debuts with IPO on Nasdaq

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midwest holding

Midwest Holding Inc. has its office at 2900 S. 70th St., Suite 400.

A local financial services firm has become the third Lincoln-based company to trade on a major stock exchange.

Midwest Holding Inc., which sells insurance and investment products, raised $70 million Thursday with an initial public offering on the Nasdaq Stock Market.

The company, which trades under the symbol MDWT, sold 1 million shares at $70 a share, on the low end of its proposed offering.

In its first day of public trading on the Nasdaq, the stock was popular, with nearly 255,000 shares changing hands. But it did not perform well, falling nearly 20% to close at $56.25.

Midwest Holding had first disclosed its plans for an IPO in a November securities filing, and it set the price in a range of $70-$74 a share in a filing last week.

The company, which was founded in 2003, distributes investment and insurance products through three subsidiaries: Nebraska-based life insurer American Life & Security, Vermont-based captive reinsurer Seneca Re, and Delaware LLC 1505 Capital, a financial advisory firm.

It also provides a cloud-based policy administration solution, called m.pas, which currently operates as a division of American Life. It reported year-to-date revenue of $11.4 million as of Sept. 30 and a net loss of $526,000.

Midwest Holding said in a news release that it plans to use the proceeds of the IPO to fund growth of American Life & Security, including a possible expansion of its product line.

Midwest Holding joins NRC Health, which also trades on Nasdaq, and Nelnet, which trades on the New York Stock Exchange, as the only Lincoln-based companies with stock that is traded on the two main U.S. stock exchanges.

LINCOLN BUILDINGS THAT HAVE MADE HISTORY

Reach the writer at 402-473-2647 or molberding@journalstar.com.

On Twitter @LincolnBizBuzz.

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