Ryan Specialty Group Holdings, Inc. (RSG) has announced plans for an initial public offering (IPO) of an undisclosed number of shares of its Class A common stock, as the company reports $1 billion of revenue and impressive organic growth for 2020.
This is the very first time there has been public market access for RSG’s Class A common stock, and the firm will apply to have stock listed on the New York Stock Exchange (NYSE), under the symbol RYAN.
Through its IPO, RSG is hoping to raise an as yet undisclosed amount, of which it intends to use the net proceeds to purchase outstanding and newly issued non-voting common interest units in Ryan Specialty Group, LLC (Holdings LLC).
Net proceeds from this offering will also be used to purchase preferred units of Holdings LLC held by Onex through the acquisition of the equity of the Preferred Blocker Entity; and also to purchase outstanding LLC Units from certain existing holders of LLC Units at a price per LLC Unit equal to the per share initial public offering price of the shares of Class A common stock less the underwriting discounts and commissions.
Alongside its IPO announcement, RSG has communicated some of its financials for the full-year 2020 and for the first-quarter of 2021.
For 2020, total revenue increased from $765 million in the prior year to more than $1 billion. In Q1 2021, total revenue hit $311.5 million, compared with $208 million for the prior year period.
Of the year-on-year increase in total revenue for 2020, RSG says that organic growth accounted for 20.4% of the increase.
Overall, operating income increased by almost 57% to $158.5 million in 2020, while net income improved by almost 12%, year-on-year, to $70.5 million.
