Personal and commercial lines brokerage TWFG, Inc has announced the launch of its initial public offering (IPO) of 11,000,000 shares of Class A common stock, as per the registration statement filed with the Securities and Exchange Commission (SEC).
The initial public offering price is expected to range between $14 and $16 per share. The company has also granted underwriters the option to purchase up to an additional 1,650,000 shares of Class A common stock. TWFG plans to list its Class A common stock on the Nasdaq Global Select Market under the symbol “TWFG.”
TWFG said that upon completion of the IPO, it will become the sole managing member of TWFG Holding Company, LLC, overseeing all business operations and affairs.
The net proceeds from the IPO will be used by TWFG to acquire newly issued LLC units of TWFG Holding Company, LLC, matching the number of shares of Class A common stock issued in the IPO. These LLC units will be purchased at the IPO price per share of Class A common stock, minus underwriting discounts and commissions.
TWFG will also direct TWFG Holding Company, LLC to use the proceeds to pay fees and expenses related to the IPO and reorganization transactions, repay outstanding debt under its revolving credit agreement, and fund potential strategic acquisitions or investments in businesses or technologies that align with its expansion strategies and general corporate purposes.
JP Morgan, Morgan Stanley, BMO Capital Markets, and Piper Sandler are acting as joint lead book-running managers. RBC Capital Markets, UBS Investment Bank, Keefe, Bruyette & Woods, William Blair, and Dowling & Partners Securities LLC are also participating as managers for the proposed offering. The offering will be made solely by means of a prospectus.
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