Ryan Specialty to raise $1.34bn in IPO after pricing at midpoint range
US-based Ryan Specialty Group has priced its initial public offering (IPO) at $23.50 per share, in the middle of its previously announced range of $22.00 to $25.00 per share.
The Patrick Ryan-led company will raise gross proceeds of $1.34 billion at this price point. It is offering almost 57 million shares of its Class A common stock.
Additionally, the Chicago-based company has granted the underwriters a 30-day option to purchase up to an additional 8,537,742 shares of its Class A common stock at the initial public offering price, less underwriting discounts and commissions.
The shares are expected to begin trading on the New York Stock Exchange (NYSE) on July 22, under the symbol 'RYAN'.
The offering is expected to close on July 26, subject to the satisfaction of customary closing conditions.
Upon completion of the IPO, Ryan Specialty will be the sole managing member of Ryan Specialty Group and will exclusively operate and control all of its business and affairs.
Ryan Specialty will receive net proceeds of approximately $1.23 billion after deducting underwriting discounts and commissions and estimated expenses.
It intends to use the net proceeds to acquire newly issued LLC units of Ryan Specialty Group; and the equity of an entity through which an affiliate of Onex Corporation holds its preferred unit interest in Ryan Specialty Group.
It also seeks to acquire outstanding LLC units of Ryan Specialty Group from certain existing holders of LLC units at a purchase price per LLC unit equal to the initial public offering price per share of Class A common stock in this offering, less underwriting fees and commissions.
JP Morgan, Barclays, Goldman Sachs & Co. and Wells Fargo Securities are acting as lead book-running managers, and UBS Investment Bank, William Blair, RBC Capital Markets, BMO Capital Markets, and Keefe, Bruyette & Woods, A Stifel Company, are acting as book-running managers for the proposed offering.
Dowling & Partners Securities, Nomura, Capital One Securities, CIBC Capital Markets, Loop Capital Markets, PNC Capital Markets, Ramirez & Co., and Siebert Williams Shank are acting as co-managers for the proposed offering.
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