Bermuda-based Arch Capital Group Ltd. announced that it plans to commence marketing for a public offering of 7,285,000 of its common shares. The company will sell 4,425,000 common shares and up to an additional 2,860,000 common shares are to be offered by certain selling shareholders.
Arch’s bulletin also indicated that the number of shares to be sold doesn’t include 1,092,750 common shares subject to the underwriters’ over-allotment option, which will be made available to the underwriters by the Company and the selling shareholders pro rata.
“Arch Capital Group expects to use the net proceeds from its sale of common shares for general corporate purposes, including contributions to the capital of its wholly owned insurance and reinsurance subsidiaries to support their underwriting activities,” said the announcement. It also noted that the company would not receive any of the net proceeds from the sale of the common shares by the selling shareholders.