(Reuters) - Insurance broker TWFG's shares gained nearly 30% in their Nasdaq debut on Thursday, signaling strong investor demand for new stocks as the U.S. initial public offering market aims for a recovery.

IPOs in the U.S. are attempting to stage a meaningful recovery in 2024 as high-profile companies begin testing investor appetite, following a two-year downturn due to rising interest rates and geopolitical turmoil.

TWFG shares began trading at $22 apiece, compared with the IPO price of $17 each. The company, backed by reinsurer RenaissanceRe, sold 11 million shares in the offering to raise $187 million.

Texas-based TWFG, which works with more than 300 insurance carriers, is present in 41 states and the District of Columbia. Its business operates within the broader property and casualty (P&C) insurance market.

Wage growth and heightened expectations of a soft-landing have allowed businesses to revive spending on insurance policies despite higher prices. That has boosted brokers, whose commissions are tied to the premiums insurers charge.

TWFG, better known as Woodlands Financial Group, also counts Bunch Family Holdings and private investment firm Griffin Highline Capital among its shareholders.

Auto insurer Progressive and insurance bellwether Travelers account for a sizeable portion of TWFG's revenue.

The IPO was underwritten by a group of nine Wall Street banks led by J.P. Morgan Securities, Morgan Stanley, BMO Capital Markets and Piper Sandler.