(Bloomberg) -- TWFG Inc. shares climbed 29% in its debut as a public company after the personal and commercial insurance distributor raised $187 million in an initial public offering.
Shares in TWFG closed at $22.01 each on Thursday. The Woodlands, Texas-based company sold 11 million shares Wednesday for $17 each, above the marketed range of $14 to $16 apiece. The trading gives TWFG a market value of $1.2 billion.
Founded in 2001, TWFG is a personal and commercial insurance platform that serves over 2,400 agencies, according to its filings with the US Securities and Exchange Commission. The company has a physical presence in 41 states and the District of Columbia, and is licensed in all 50 states, though a significant portion of the company’s business is concentrated in Texas, California and Louisiana.
TWFG had net income of $26 million on revenue of $159 million for 2023, compared with net income of $21 million on revenue of $139 million a year earlier, according to the filings. The company’s so-called agency-in-a-box model, which facilitates the administrative work of operating an agency such as insurance carrier access and marketing tools, accounted for 77% of its 2023 revenue.
Entities controlled by Chief Executive Officer Richard F. Bunch III are set to hold about 94% of shareholder voting power, the filings show.
The offering was led by JPMorgan Chase & Co., Morgan Stanley, Bank of Montreal and Piper Sandler Cos. The company’s shares trade on the Nasdaq Global Select Market under the symbol TWFG.
--With assistance from Michael Hytha.
(Updates with closing price in first and second paragraphs.)
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