Independent insurance distribution firm BRP Group Inc. could raise as much as $300 million in its initial public offering (IPO) of 16.4 million shares of its Class A common stock priced to the public at $14 per share.
The stock begins trading today on the Nasdaq Global Select Market under the ticker symbol BRP.
The $14 is at the lower end of the $14 to $16 range the company floated last month in announcing its plan to file an IPO with aim to raise $100 million. The underwriters for the offering also have a 30-day option to purchase up to 2.46 million additional shares.
BRP estimates that its net proceeds from this offering will be approximately $228.8 million (or approximately $263.1 million if the underwriters exercise their option to purchase additional shares), after deducting underwriting discounts and commissions but before deducting estimated offering expenses.
At the offer price, the firm’s market value is about $908 million, according to analysts.
BRP, based in Tampa, Fla., was founded in 2011. It offers insurance and risk management products to 400,000 clients across the U.S. and internationally, with more than 40 offices in four states and 466 employees. The firm specializes in offering middle market products, including personal and commercial insurance, employee benefits for mid-to-large-sized businesses, as well as insurance for high net worth individuals.
In 2018, BRP was ranked the 43rd largest privately-held independent insurance agency in the U.S. by Insurance Journal. It moved up to number 33 on Insurance Journal’s Top 100 list in 2019. Its total property/casualty insurance revenue in 2018 was more than $62 million, with nearly $463 million in total premiums written. The company reported 5% premium growth in 2018.
According to its SEC filing of Oct. 11, 2019, the firm achieved an increase in commissions and fees from $48.0 million in 2017 to $79.9 million in 2018 and reported consolidated organic revenue growth of 18% in 2018. It achieved similar results in 2017, reaching 17% organic revenue growth…