Pavilion Insurance Network said its hares had gone to a premium of 20% on its first day of trading on AIM.
The share price rose from 5p to 6p, said the company.
The niche insurer has four branded products, Musicguard, Photguard, Cycleguard and Journeyguard.
The £550,000 raised by the placing will be used to expand on Pavilion's current products and develop new offerings, said the company.
It said further specialist solutions would be developed towards the end of the year.
Insinger de Beaufort is acting as Pavilion's nominated adviser, and Insinger Townsley as its broker.
