Ryan Specialty Group's IPO raises $1.34 billion in debut
A Bloomberg analysis predicts that RSG's IPO will be the largest on U.S. exchanges this week.
Ryan Specialty Group (RSG) has raised $1.34 billion in its initial public offering debut, Bloomberg reported. Shares of the wholesale broker and managing underwriter sold for $23.50 in the IPO. They rose to $25.60 Thursday (July 22) morning before hitting $28 in the afternoon, giving the company a market value of $7.15 billion.
According to Bloomberg, RSG sold nearly 57 million shares on Wednesday, July 21, and is on pace to be the largest of 29 IPOs on U.S. exchanges this week.
Bloomberg also reported that Chairman and CEO Patrick G. Ryan, who founded RSG in 2010 after founding Aon and serving the firm as chairman and chief executive for 41 years, will retain control of 67% of shareholder voting power following the listing.
In a press release announcing the IPO, the Chicago-based company said it intends to use the net proceeds received from the offering to acquire newly issued LLC units of Ryan Specialty Group, the equity of an entity through which an affiliate of Onex Corporation holds its preferred unit interest in Ryan Specialty Group and outstanding LLC units of Ryan Specialty Group from certain existing holders of LLC units.
This news comes a few months shy of the one-year anniversary of RSG’s merger with All Risks, Ltd., under the RSG name, which closed in September 2020.
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