Federated National Holding Co., a Florida-based property/casualty insurer, announced the closing of its public offering of 2,358,975 shares of its common stock, which includes 307,692 shares sold pursuant to the exercise of the 30-day option granted to the underwriters to cover overallotments, at a price to the public of $19.50 per share.
The offering generated net proceeds to the company of approximately $43.4 million, after deducting the underwriter’s discount but before offering expenses.
The company said it will use the net proceeds from the sale for general working capital purposes, including as statutory capital in support of the company’s growth and to sustain its capital levels after its investment in a new Florida homeowners insurance company that it is forming.
The company announced recently that it was joining with the Canadian bank and investment manager C.A. Bancorp Inc. to form a new Florida-based homeowners insurance carrier to be named Monarch National Insurance Co. Each party is putting up $14 million in the new venture, while Transatlantic Reinsurance Co. will have a minority position with a $5 million investment.
Raymond James served as book-running manager and William Blair and Janney Montgomery Scott acted as co-managers.