By Pritam Biswas and Arasu Kannagi Basil

(Reuters) -Hamilton Insurance Group notched a valuation of $1.68 billion as shares rose 1.7% in a tepid market debut on Friday, indicating limited investor appetite for new listings.

The Bermuda-based company’s stock opened at $15.25, compared with the initial public offering price of $15. The IPO of 15 million shares had raised $225 million in proceeds.

Hamilton’s IPO follows a slew of major market debuts in September and October, fueling hopes of a recovery from last year when rising interest rates and geopolitical tensions had put a dampener on new listings.

British chipmaker Arm Holdings (NASDAQ:), grocery delivery app Instacart (NASDAQ:), marketing automation firm Klaviyo (NYSE:) and luxury sandal maker Birkenstock (NYSE:) listed their shares, looking for rich valuations.

However, bankers and lawyers interviewed by Reuters have advised companies to seek more conservative valuations in their IPOs so they can entice stock market investors with bargains, as all major listings are trading below their IPO prices.

“Recent large listings have shown that there is still some contention over valuation, and their receptions have made it clear that premium multiples aren’t a given like they were in 2021,” said Avery Spear, senior data analyst at Renaissance Capital.

Founded in 2013, Hamilton Insurance underwrites specialty insurance and reinsurance risks globally through its wholly owned subsidiaries.

Investors have shown appetite for insurance and reinsurance companies this year, with shares of Skyward Specialty Insurance soaring since its debut in January. Reinsurer Everest Group also successfully raised about $1.5 billion.

Investor optimism for the insurance sector has pushed the S&P Insurance Select Industry index up 5% this year.

The Renaissance IPO index, which tracks the performance of major listings, has risen about 24% this year.

Barclays and Morgan Stanley are acting as the lead underwriters for Hamilton Insurance’s offering.

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