The Woodlands Financial Group (TWFG), an insurance broker supported by reinsurer RenaissanceRe, has announced its intention to raise up to $176m through its upcoming Initial Public Offering (IPO).
This IPO takes place during a period of heightened US IPO activity, the highest since 2021, as investor interest in new listings grows, according to InsurTech Insights. The firm is offering 11m shares, priced between $14 and $16 each.
Founded in 2001 by former insurance agent Gordy Bunch and based in The Woodlands, Texas, TWFG serves as a retail and wholesale distributor of personal and commercial property and casualty (P&C) insurance.
The company collaborates with over 300 insurers and operates in 41 states, plus the District of Columbia, with its main activities concentrated in Texas, California, and Louisiana.
The broker’s shareholders include Bunch Family Holdings and private investment firm Griffin Highline Capital. Post-IPO, entities controlled by TWFG CEO Gordy Bunch will retain 94.4% of the combined voting power in the broker.
The funds raised from the IPO will primarily be used by TWFG to settle existing mergers and acquisitions (M&A) and to invest in other businesses. TWFG will list on NASDAQ under the symbol “TWFG”.
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.
Previously, the company has seen significant investments from entities like Bunch Family Holdings and Griffin Highline Capital.
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