Skyward Specialty Prices Its Upsized Follow-On Offering Of 5M Common Shares At $30.50/Share
Portfolio Pulse from Benzinga Newsdesk
Skyward Specialty Insurance Group has priced its upsized follow-on offering of 5 million shares at $30.50 each. Of these, 2.15 million shares are offered by Skyward Specialty and 2.85 million by existing stockholder The Westaim Corporation.
November 16, 2023 | 7:24 am
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Skyward Specialty has announced an upsized follow-on offering of 5 million shares at $30.50 per share, which may dilute existing shareholders' equity.
The announcement of an upsized follow-on offering typically leads to short-term negative pressure on a company's stock price due to the dilution of existing shares. Investors may react to the increased share count and potential dilution of earnings per share.
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The Westaim Corporation is selling 2.85 million shares of Skyward Specialty at $30.50 per share in the follow-on offering.
The sale of shares by The Westaim Corporation could be seen as a way to liquidate part of its investment, which might not have a direct short-term impact on its stock price. However, the proceeds from the sale could improve Westaim's liquidity position.
CONFIDENCE 85
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RELEVANCE 80