Ryan Specialty Group Climbs in Debut After $1.34 Billion IPO
(Bloomberg) -- Ryan Specialty Group Holdings Inc., the insurance company led by Aon Corp. founder Patrick G. Ryan, rose 17% in its trading debut after raising $1.34 billion in an initial public offering.
Shares of Chicago-based Ryan Specialty Group closed Thursday at $27.50, giving it a market value of about $7 billion. The company sold almost 57 million shares for $23.50 each Wednesday after marketing them for $22 to $25.
Ryan, who is chairman and CEO of Ryan Specialty Group, will control 67% of the shareholder voting power in the company after the listing, according to the company’s filings with the U.S. Securities and Exchange Commission. He and his family will own most of the Class B shares, which carry 10 votes each compared with one each for the Class A shares sold in the IPO, according to the filings.
The listing is set to be the largest of 29 IPOs on U.S. exchanges this week. Those companies are seeking to raise more than $6.6 billion combined, according to data compiled by Bloomberg.
Among five other companies making their U.S. trading debuts Thursday, online education company Instructure Holdings Inc. closed up 4.9% after raising $250 million in its IPO.
Beverage company Zevia PBC fell 2.5% in its debut, while similarly named but unrelated software maker Zenvia Inc. plunged 22% from its IPO price.
Drug research firm AbSci Corp., had the biggest first-day gain with a 35% increase, followed by software company Couchbase Inc.’s 27% increase from its offer price.
“We are probably more prevalent in your day to day life than you realize,” Couchbase Chief Executive Officer Matt Cain said in an interview. The company’s clients include Domino’s Pizza Inc., Intuit Inc. and car-rental company Avis Budget Group Inc., which use Couchbase’s database software platform to better serve their own customers.
Ryan Specialty Group provides insurance products to brokers, agents and carriers, including underwriting and administration services.
Ryan, who started his namesake company in 2010, served as Aon’s chairman and chief executive officer for 41 years, according to the firm’s website. A graduate of Northwestern University, he has been a member of the school’s board of trustees for 42 years and also served as chairman of Chicago’s 2016 Olympic bid committee.
For the first three months of the year, the company had pro forma net income of $4.7 million on revenue of $311 million, the filings show.
The offering is being led by JPMorgan Chase & Co., Barclays Plc, Goldman Sachs Group Inc. and Wells Fargo & Co. The company’s shares are trading on the New York Stock Exchange under the symbol RYAN.
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