The IPO Buzz: Skyward Specialty Insurance (SKWD) Ready for Takeoff

All eyes in the IPO market are skyward this week. Skyward Specialty Insurance Group (SKWD proposed) is set to become the first big IPO of 2023. The P&C specialty insurance company’s IPO is scheduled to price Thursday night (Jan. 12, 2023) to trade Friday (Jan. 13, 2023) on the NASDAQ. The size is modestly north of the $100-million threshold that gets Wall Street’s attention: 8.5 million shares at $14.00 to $16.00 to raise $127.5 million.

The word is that this IPO is coming at “a decent discount to the group” of specialty insurance companies, the IPO professionals say. 

Barclays, Keefe, Bruyette & Woods, Piper Sandler, JMP Securities, Truist Securities and Raymond James are the joint book-runners.

Specialty insurance is not sexy. But Skyward has that certain something – profit – that gets Wall Street going.

“We like it,” a seasoned IPO trader says. “It’s insurance, it’s profitable, and it’s the first big IPO of the year.”

Skyward had 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.

Based in Houston, Skyward Specialty Insurance Group 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.


Skyward is exiting some business lines, including professional liability insurance for lawyers, insurance agents and brokers, in line with its “Rule Our Niche” strategy, the prospectus says.

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Drilling Into The Deal

Of the 8.5 million shares in the IPO, Skyward is offering 4.75 million shares and the selling stockholders are offering 3.75 million shares, the prospectus says. Skyward will not receive any proceeds from the sale of the selling stockholders’ shares.

The selling stockholders include the Westaim Corp. and Mt. Whitney Securities LLC.

Skyward will receive about $71 million in IPO proceeds, which it plans to use to help expand its business.


Thursday morning’s data – December U.S. CPI – will set the tone for market conditions ahead of Skyward’s pricing – and that could have an impact on the deal, a veteran IPO professional says.

Nevertheless, the mood around Skyward is warm and hopeful – a welcome feeling for IPO investors who weathered the brutal chill of 2022. The year went down in IPO history as the worst since 2008, when Lehman Brothers filed for bankruptcy, according to IPOScoop’s records. 

Kick It Like Lionel

Elsewhere on Wall Street, a tiny NASDAQ uplisting – Atlas Lithium (ATLX) – became the first deal priced in 2023. Atlas Lithium’s stock – priced below range at $6.00 – closed just above $7 on Tuesday (Jan. 10, 2023), its first day of trading. E.F. Hutton was the sole book-runner.

Looking ahead to Thursday night, the small-cap IPO of MGO Global (MGOL proposed) is expected to price – pending NASDAQ approval, the Street hears. This fashion and global lifestyle brand designs and sells men’s clothes under a license agreement with soccer legend Lionel Messi – hot off his World Cup win at Qatar.

Like many fashion brands – especially start-ups – MGO Global is not profitable.

Stay tuned.

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Disclosure: Nobody on the staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The 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 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.