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Insurance broker TWFG prices US IPO above range to raise about $187 million

Published 07/17/2024, 08:33 PM
Updated 07/18/2024, 09:30 AM
© Reuters. FILE PHOTO: The Nasdaq Market site is seen in New York City, U.S., March 26, 2024. REUTERS/Brendan McDermid/File Photo
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(Reuters) - Insurance broker TWFG, backed by U.S. reinsurer RenaissanceRe (NYSE:RNR), said on Wednesday it priced its initial public offering (IPO) above its indicated range, seeking to raise up to $187 million.

TWFG priced its 11 million shares at $17 apiece, and had marketed them at a range of $14 to $16.

The share offering comes at a time when the U.S. IPO market is at its strongest since 2021 as investors continue to warm up to new listings.

Texas-based TWFG, which works with more than 300 insurance carriers, has a presence in 41 states and the District of Columbia. Its business, however, is mainly concentrated in Texas, California and Louisiana.

Rising premiums in recent years have benefited brokers, who generally pocket a percentage of insurance premiums as commission.

© Reuters. FILE PHOTO: The Nasdaq Market site is seen in New York City, U.S., March 26, 2024. REUTERS/Brendan McDermid/File Photo

The offering is being underwritten by a syndicate of nine Wall Street banks led by J.P. Morgan Securities, Morgan Stanley, BMO Capital Markets and Piper Sandler.

The company will list on the Nasdaq Global Select Market under the symbol "TWFG" on Thursday.

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