Bowhead Specialty, a provider of casualty and professional liability products, has revealed the pricing of its upsized initial public offering (IPO) of 7,529,412 shares of its common stock at a public offering price of $17.00 per share.
Earlier this month, Bowhead announced the launch of its IPO of 6,666,667 shares of common stock, with a then-expected price between $14.00 and $16.00 per share.
Now, with the updated figures, the aggregate gross proceeds from the offering are expected to be $128 million before deducting underwriting discounts and commissions and estimated offering expenses.
The shares are expected to begin trading on the New York Stock Exchange on May 23, 2024, under the symbol “BOW”.
The offering is expected to close on Tuesday, May 28, 2024, subject to the satisfaction of customary closing conditions.
According to Bowhead, the principal purposes of this offering are to increase the firm’s capitalisation and financial flexibility, create a public market for its common stock and enable access to the public equity markets for Bowhead and its stockholders.
The firm explained that it intends to use the net proceeds received from this offering to make capital contributions to its insurance company subsidiary to grow its business and for other general corporate purposes.
Bowhead has additionally revealed that it has granted the underwriters a 30-day option to purchase up to an additional 1,129,411 shares of its common stock at the initial offering price, less underwriting discounts and commissions.
J.P. Morgan, Morgan Stanley and Keefe, Bruyette & Woods, A Stifel Company are acting as joint lead bookrunning managers of the offering and as representatives of the underwriters.
Meanwhile, Citizens JMP, RBC Capital Markets and Dowling & Partners Securities, LLC are acting as joint bookrunning managers and Siebert Williams Shank is acting as co-manager for the offering.
