Bowhead Specialty announces pricing of upsized initial public offering

Last week, specialty insurer/MGA Bowhead Specialty announced the launch of its IPO, with the intent to offer ~6.6 million shares at a price range of $14-$16 per share. The company is now announcing that it will offer 7,529,412 shares of its common stock at a price of $17 per share.

The aggregate gross proceeds to the company from the offering are expected to be $128 million before deducting underwriting discounts and commissions and estimated offering expenses. The company 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. 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. The principal purposes of this offering are to increase the company’s capitalization and financial flexibility, create a public market for its common stock and thereby enable access to the public equity markets for the company and its stockholders. The company 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.