Bowhead Specialty Announces Secondary Offering of Common Stock

Bowhead Specialty Holdings Inc. (NYSE: BOW) has announced a secondary offering of 7,529,412 shares of its common stock at a public offering price of $17.00 per share. The offering is expected to raise $128.0 million in gross proceeds, with the company granting underwriters a 30-day option to purchase up to an additional 1,129,411 shares. The shares are expected to begin trading on the New York Stock Exchange under the symbol "BOW" on May 23, 2024.


The secondary offering is expected to close on May 28, 2024, subject to 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 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.


The secondary offering is being made only by means of a prospectus. Copies of the final prospectus relating to the offering may be obtained from J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, or Keefe, Bruyette & Woods, Inc. A registration statement relating to the offering has been filed with the SEC and became effective on May 22, 2024.

Bowhead Specialty is a growing specialty insurance business providing casualty and professional liability insurance products. The company was founded and is led by industry veteran Stephen Sills, with a team composed of highly experienced and respected industry veterans. Bowhead Specialty focuses on providing "craft" solutions in its specialty lines and classes of business, requiring deep underwriting and claims expertise to produce attractive financial results.

The secondary offering is expected to have a dilution effect on existing shareholders, as the number of outstanding shares will increase. However, the company's strategic objectives align with the use of proceeds from the offering, as the funds will be used to grow its business and increase its financial flexibility. The offering also creates a public market for the company's common stock, enabling access to the public equity markets for the company and its stockholders.

The secondary offering carries potential risks and challenges for both the company and its shareholders. Market conditions and investor sentiment can impact the success of the offering and the company's stock price. Additionally, the increased number of outstanding shares may dilute the value of existing shares. However, the company's strategic objectives and the use of proceeds from the offering suggest that the secondary offering aligns with Bowhead Specialty's long-term growth strategy.