BRP Stock: Why It Significantly Increased Today

By Annie Baker ● Sep 15, 2021
  • The stock price of BRP Group, Inc. (NASDAQ: BRP) increased by over 10% during intraday trading today. This is why it happened.

The stock price of independent insurance distribution firm BRP Group, Inc. (NASDAQ: BRP) increased by over 10% during intraday trading today. Investors are responding positively to BRP Group announcing the pricing of its offering of 8 million shares of its Class A common stock at a price to the public of $30.50 per share. 

The underwriters for the offering also have a 30-day option to buy up to 1.2 million additional shares of the company’s Class A common stock. And BRP Group’s Class A common stock trades on the Nasdaq Global Select Market under the ticker symbol “BRP.” This offering is expected to close on September 17, 2021, subject to customary closing conditions.

BRP Group plans to use the net proceeds from the sale of the shares of Class A common stock offered in the offering to purchase newly issued membership interests of Baldwin Risk Partners, LLC from its operating subsidiary Baldwin Risk Partners, LLC. And Baldwin Risk Partners, LLC plans to use the proceeds from the sale of LLC Units to BRP Group as follows: (i) to pay fees and expenses in connection with the offering and (ii) for working capital and other general corporate purposes, including to fund cash payments to be made upon the closing of previously announced Partner acquisitions, Partnership opportunities that BRP Group is considering and future partnership opportunities.

If the underwriters exercise their option to buy additional shares of Class A common stock, BRP Group intends to use the additional net proceeds it receives to purchase additional newly issued LLC Units from Baldwin Risk Partners, LLC. And Baldwin Risk Partners, LLC plans to use the proceeds from the sale of additional LLC Units to BRP Group for the same purposes as stated above.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.