Well, that didn’t take long. Skyward Specialty Insurance Group (SKWD proposed) became the first big IPO of 2023 to set terms on Wednesday, Jan. 4, 2023 – the second trading day of the new year. Skyward Specialty Insurance Group plans to offer 8.5 million shares at $14.00 to $16.00 to raise $127.5 million, according to its S-1/A filing dated Jan. 4, 2023.
Of the 8.5 million shares in the IPO, the company is offering 4.75 million shares and the selling stockholders are offering 3.75 million shares, the prospectus says. Assuming mid-point pricing at $15.00, the company’s estimated IPO proceeds are $71.25 million. The company will not receive any proceeds from the sale of the selling stockholders’ shares. This is a NASDAQ listing.
Barclays, Keefe, Bruyette & Woods, Piper Sandler, JMP Securities, Truist Securities and Raymond James are the joint book-runners. (Column updated to show that today’s S-1/A filing added Raymond James to the joint book-runners.)
Skyward’s filing of its IPO terms today indicates that the deal’s launch is imminent. (See the IPO Calendar for pricing date.)
This is a profitable company: Net income of $20.29 million on revenue of $602.32 million for the 12 months that ended Sept. 30, 2022, according to the prospectus.
Skyward’s deal looks likely to be welcome news for IPO investors after enduring the heartbreak of 2022 – the worst year for the IPO market since 2008, when Lehman Brothers filed for bankruptcy.
Skyward Specialty Insurance Group, based in Houston, describes itself as “a growing specialty insurance company delivering commercial property and casualty (“P&C”) products and solutions on a non-admitted (or excess and surplus (“E&S”)) and admitted basis, predominantly in the United States. “
Its business lines include general liability, excess liability, professional liability, commercial auto, group accident and health, as well as property, surety and workers’ compensation, according to the prospectus.
“We focus our business on markets that are underserved, dislocated and/or for which standard insurance coverages are insufficient or inadequate to meet the needs of businesses, including our customers and prospective customers operating in these markets,” the prospectus says.
The filing of Skyward’s IPO terms could be the ice breaker. More big IPOs are in the pipeline – including VinFast Auto Ltd. (VFS proposed), the Vietnamese EV maker. Some believe that VinFast Auto’s IPO could raise as much as $1 billion.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.
To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message.
Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.
Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.