Skyward Specialty, a P&C insurance holding company part of Westaim Corporation, has priced its upsized initial public offering (IPO) of 8,952,383 shares of its common stock at a price of $15.00 per share, generating proceeds of around $134 million.
This includes 4,750,000 common shares being offered by Skyward Specialty and 4,202,383 common shares being sold by selling stockholders.
The underwriters also have a 30-day option to purchase up to an additional 1,342,857 common shares from the selling shareholders at the public offering price, less underwriting discounts and commissions.
The shares are expected to begin trading on January 13, 2023, on the Nasdaq Global Select Market under the ticker symbol “SKWD.”
The offering is anticipated to close on/or January 18, 2023, subject to customary closing conditions.
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.
The firm states that the principal purpose of the IPO launch 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.
It 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.
The firm first filed a registration statement with the US Securities and Exchange Commission (SEC) for an IPO in November of 2022, having submitted a draft registration statement in April of that year.
At the beginning of 2023, Reinsurance News covered the announcement of the IPO, at the time, noting the potential it could generate top-end proceeds of around $150 million.
