St. Pete’s Neptune Flood completes IPO, worth $3 billion

Neptune Insurance made its New York Stock Exchange debut Wednesday with a $3.1 billion valuation after its shares jumped 12.5% to $22.50 each. The stock closed at over $25.

The parent company of St. Petersburg-based Neptune Flood planned to raise $368.4 million by selling 18.4 million shares at $20 apiece. CEO Trevor Burgess couldn’t care less that the price subsequently soared nearly 26%. 

Burgess previously led C1 Bank, the last St. Petersburg-based company to go public. His guidance to employees has not changed since 2014: “Don’t look at the stock price.”  

“What we’re here to do is create long-term value,” Burgess told the Catalyst. “If we pay attention to our customers every day, that stock price will take care of itself.”

He added that tracking fluctuations can “drive you mad.” Burgess also noted that stocks “go up and down for no reason,” and Neptune didn’t announce “anything good or bad” to fuel the initial public offering’s (IPO) momentum. 

However, the flood insurer’s debut on the world’s largest stock exchange could not have come at a more opportune time. The U.S. Government shut down the same day, meaning the National Flood Insurance Program (NFIP) isn’t accepting new applications or processing claims. 

“It’s not every day that you can go public and your main competitor is closed due to a government shutdown,” Burgess said. “This gives Neptune the opportunity to showcase to the American public that Neptune is a viable alternative to the NFIP, and we can help the 1,300 homes close each day that require flood insurance.” 

The U.S. Securities and Exchange Commission’s (SEC) “quiet period” rule restricted Burgess from issuing public statements in the month since Neptune Insurance announced the IPO. Investors can find the firm on the NYSE under the ticker symbol “NP.”

Burgess said he is Neptune’s largest shareholder and has a “tremendous alignment with our new public shareholders to create long-term value.” Nearly 13 million shares traded hands Wednesday.

While Burgess was reticent to discuss numbers and valuations, he noted the IPO’s success is a “good story for St. Pete.” 

“This is the second homegrown St. Pete company that I’ve taken public,” he said. “We’re excited to call St. Pete home; we’re proud of being based there. It’s a great place to run a business, and it’s been a community that’s been incredibly supportive of our entrepreneurial efforts.” 

Neptune launched its artificial intelligence (AI) and data-driven platform in 2018. By 2022, the company ranked No. 205 on the Inc. 500 list of the nation’s fastest-growing companies. 

According to its SEC filing, Neptune generated $137 million in revenue over the 12 months that ended June 30, a 37% year-over-year increase. In August, the firm announced it had exceeded 250,000 policies in force, representing more than $320 million in premiums. 

However, Burgess said it wasn’t the company’s precipitous growth that led to a public offering. He credited the local one-two punch from Hurricanes Helene and Milton. 

“My business partner’s house was destroyed in Helene, mine was damaged,” Burgess explained. “We saw firsthand the power and destruction of hurricanes, and what that means from a flooding perspective.”

Flooding in St. Petersburg’s Shore Acres neighborhood following Hurricane Helene. Photo: Tony Salazar, city documents.

He said many of his neighbors lacked flood insurance. Some had NFIP policies, which provided up to $250,000 in coverage. 

“And a couple smart ones had Neptune, and we’re properly insured,” Burgess said. The company will underwrite up to $7 million. 

“The aftermath of their recovery is so different based upon the amount of flood insurance they had,” Burgess continued. “It really told us that we need to do a better job at educating Americans that your homeowner’s policy does not cover the risk of flooding.” 

He believes the national platform that comes with listing on the NYSE enables Neptune to “tell that story in a more meaningful way.” Burgess called that part of the company’s core mission, “which is how do we get more people aware and insured.” 

Burgess, raised by a single mother in New Hampshire, said he “never in a million years” imagined that he would be in this position. He is also “super proud” that each of Neptune’s 60 employees has equity in the company and was “rewarded for their hard work today.” 

“It’s a great outcome for me; it’s a great outcome for our investors,” Burgess added. “But I really think about our employees, who have worked tirelessly over the last eight years.” 

The IPO’s success will also benefit St. Petersburg, a city Burgess said has helped attract and retain the “best talent.” He announced plans for a new headquarters in a recently rezoned area along 1st Avenue and 22nd Street South.

“This is going to mean continued investment in the future of the city,” Burgess said. “And that’s what I’ve been committed to doing for the better part of the last 15 years.” 

CEO Trevor Burgess (center, podium) said Neptune Flood’s tech platform enables each employee to generate $2.5 million in revenue. Photo: NYSE, X.