P&C insurer Skyward Specialty has announced a follow-on offering of 2.15 million shares of its common stock as it looks to target further growth opportunities.
Based on Skyward’s share price as of November 14, 2023, the insurer would raise around $66 million of capital.
In addition to this follow-on offering, Westaim, Skyward Specialty’s existing stockholder, is offering 2.35 million shares. It also granted the underwriters a 30-day option to purchase up to an additional 675,000 shares.
“Skyward Specialty’s principal purposes of the offering are to support its continued growth and allow the Company to capitalise on market opportunities – led by its existing lines, but also continuing to expand into new products and adjacencies that fit the Company’s strategy by increasing capitalization and financial flexibility. Skyward Specialty will not receive any of the proceeds from the sale of the shares by Westaim,” the insurer stated.
Barclays, Keefe, Bruyette & Woods, Inc., A Stifel Company and Jefferies are acting as joint lead book-running managers for the proposed offering.
Acting as joint book-running managers for the proposed offering are Piper Sandler, JMP Securities, A Citizens Company, Truist Securities, Raymond James, BMO Capital Markets and Wolfe | Nomura Alliance.
Earlier in the year, Skyward Specialty launched its initial public offering (IPO) of its common stock. This was expected at $14.00 and $16.00 per share, with the potential to generate top-end proceeds of around $150 million.
With this IPO the insurer aimed to increase capitalisation, financial flexibility and create a public market for its common stock. A portion of the net proceeds from this offering was also aimed to make capital contributions to Skyward’s insurance company subsidiaries, the company noted.
