Bowhead Specialty, a prominent specialty insurer and managing general agent (MGA), has formally announced the commencement of its initial public offering (IPO). The company plans to offer 6,666,667 shares of its common stock, as outlined in its registration statement on Form S-1, submitted to the Securities and Exchange Commission (SEC). With an anticipated price range of $14 to $16 per share, Bowhead Specialty aims to raise substantial capital through this strategic move. Additionally, the company intends to grant the underwriters a 30-day option to acquire up to an additional 1,000,000 shares of its common stock, providing further financial flexibility.
The company’s decision to go public marks a significant milestone in its growth trajectory, driven by a multipronged strategy aimed at enhancing capitalization, fostering financial agility, and creating a robust market for its common stock. By securing a listing on the New York Stock Exchange under the symbol “BOW,” Bowhead Specialty endeavors to unlock new avenues for capital infusion and expand its shareholder base.
The primary objectives underlying this offering include bolstering the company’s capital structure, facilitating business expansion initiatives, and fortifying its position within the competitive landscape of the insurance industry. Bowhead Specialty intends to utilize the net proceeds from the IPO to augment capital contributions to its insurance company subsidiary, thereby fueling business growth, and to address general corporate needs.
Leading the charge in this landmark event are esteemed financial institutions, with J.P. Morgan, Morgan Stanley, and Keefe, Bruyette & Woods, A Stifel Company serving as joint lead bookrunning managers. Furthermore, Citizens JMP, RBC Capital Markets, and Dowling & Partners Securities, LLC have been appointed as joint bookrunning managers, while Siebert Williams Shank assumes the role of co-manager for the proposed offering.
Established in late 2020 with substantial financial backing from Gallatin Point Capital, American Family Insurance, and its management team, Bowhead Specialty has rapidly emerged as a key player in the casualty and professional liability insurance segments. Notably, the company reported impressive financial performance, boasting $508 million in written premiums and $16 million in net income last year.
As Bowhead Specialty sets its sights on achieving a targeted valuation of approximately $491 million, investors and industry observers alike are poised to witness the unfolding of a pivotal chapter in the company’s trajectory. With a steadfast commitment to delivering value to its stakeholders and driving sustainable growth, Bowhead Specialty embarks on this transformative journey with confidence and purpose, poised to chart new heights of success in the dynamic landscape of the insurance marketplace.
