Skyward Specialty, a P&C insurance holding company part of Westaim Corporation, has launched its initial public offering (IPO) of its common stock, expected at $14.00 and $16.00 per share, with the potential to generate top-end proceeds of around $150 million.
The offering consists of 4,750,000 shares of stock offered by Skyward Specialty and 3,750,000 shares of stock to be sold by certain of Skyward Specialty’s existing stockholders. It also includes an additional 1,275,000 shares to be sold by existing stockholders that the underwriters have the option to purchase.
The shares are anticipated to trade on the Nasdaq Global Select Market under the ticker symbol “SKWD”.
Barclays Capital Inc. and Keefe, Bruyette & Woods, Inc. are acting as joint lead book-running managers for the offering, while Piper Sandler & Co., JMP Securities, A Citizens Company, Truist Securities, Inc., and Raymond James & Associates, Inc., are acting as joint book-running managers.
Academy Securities, Inc. and Siebert Williams Shank & Co., LLC, are acting as co-managers for the offering.
Skyward Speciality first filed a registration statement with the US Securities and Exchange Commission (SEC) for an IPO back in November of last year, having submitted a draft registration statement in April.
Now, with the launch of its IPO, the firm states that its principal purpose is to increase capitalisation and financial flexibility and create a public market for its common stock, thereby enabling access to the public equity markets for Skyward Specialty and its stockholders.
The firm also notes that it intends to use a portion of the net proceeds from this offering to make capital contributions to its insurance company subsidiaries to grow its business, using the remainder for general corporate purposes.
Skyward Specialty adds that it will not receive any proceeds from any sale of shares of common stock by the selling stockholders.
Meanwhile, At September 30, 2022, Westaim’s look-through interest in Skyward Specialty shares of common stock through the Westaim HIIG Limited Partnership of 21.9%, combined with its direct ownership of the Skyward Specialty preferred shares, which are convertible into Skyward Specialty shares of common stock representing 21.9% of the fully diluted Skyward Specialty shares of common stock, resulted in a 43.8% look-through interest in Skyward Specialty. It does not intend to sell or buy any Skyward Specialty shares of common stock as part of the IPO.
Westaim also took this opportunity to announce the resignation of Kevin Rooney as Corporate Secretary.
The firm expressed its gratitude for Rooney’s service, adding that Robert Kittel will now act as Corporate Secretary in addition to his role as Chief Operating Officer.
