Broker and managing general agent TWFG Inc announced that it raised approximately $168.3 million from an initial public offering (IPO) of 11 million shares.
The shares began trading on the Nasdaq Global Select Market on July 18, according to a report from AM Best.
TWFG used the IPO proceeds to acquire newly issued LLC units of TWFG Holding Co LLC. As a result, it will be the sole managing member of the holding company, overseeing all its business and affairs.
The company priced its Class A common stock shares at $17 each and granted underwriters a 30-day option to purchase an additional 1.65 million shares at the IPO price, less underwriting discounts and commissions.
Entities controlled by TWFG CEO Richard Bunch III (pictured above) will hold 94.4%—or 94% if the additional 1.65 million shares are purchased—of the combined voting power of the common stock, according to a US Securities and Exchange Commission filing.
Founded in 2001 by Bunch, TWFG operates primarily in Texas, California, and Louisiana but is licensed nationwide. The company has locations in 41 states and the District of Columbia, spanning insurance services and MGA business.
Shares of TWFG Inc (NASDAQ: TWFG) were trading at $22.00 on the afternoon of July 22, down 2.70% from the previous close.
Bloomberg reported that 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 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.
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.
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