TWFG Insurance, a US-based intermediary, has closed its IPO, raking in $187m.
The company offered 11 million shares of Class A common stock at $17 each, excluding underwriting discounts and commissions.
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These shares commenced trading on the Nasdaq Global Select Market on 18 July 2024 under the ticker ‘TWFG’.
Following the IPO’s completion, TWFG became the sole managing member of TWFG Holding Company, gaining exclusive control over its business operations.
Established in 2001, TWFG (The Woodlands Financial Group) is an independent distributor of personal and commercial insurance products in the US.
The company provides an array of insurance solutions.
The latest offering comes amid a robust US IPO market, the strongest since 2021, as investor interest in new listings continues to grow, according to Reuters.
TWFG, headquartered in Texas, collaborates with more than 300 insurance carriers and has a footprint across 41 states and the District of Columbia, with significant business concentrations in Texas, California and Louisiana.
The insurance brokerage industry has seen a positive impact from rising premiums in recent years, with brokers benefitting from commissions that are typically a percentage of the insurance premiums.
TWFG plans to allocate the IPO proceeds towards paying fees and expenses related to the offering and reorganisation transactions, repaying outstanding debt under its revolving credit agreement, and pursuing potential strategic acquisitions or investments in businesses or technologies that align with its growth and expansion strategies.
The offering saw a consortium of financial institutions serving as managers, with J.P. Morgan, Morgan Stanley, BMO Capital Markets and Piper Sandler as joint lead book-running managers.
RBC Capital Markets, UBS Investment Bank, Keefe, Bruyette & Woods, A Stifel Company and William Blair acted as joint book-running managers, while Dowling & Partners Securities served as the co-manager.
