Arch Capital To Raise $352 M

Arch Capital To Raise $352 M

NU On line News Service, March 12, 4:10 p.m. EST?Arch Capital Group Ltd. said it plans to offer more than 7.3 million shares of common stock.[@@]

Of the 7.3 million, 4.4 million shares would be offered by the company and 2.9 million would be offered by the selling shareholders.

The Hamilton, Bermuda-based underwriter of primary insurance and reinsurance said there are also 1.1 million shares subject to the underwriter's over-allotment.

The total sale, including the over-allotment, would raise $352 million at an afternoon stock price of $42.03 a share.

Arch said it would use the proceeds from the sale for general corporate purposes, including contributions to the capital of its wholly owned insurance and reinsurance subsidiaries to support their underwriting activities. Arch will not receive any of the net proceeds from the sale of the common shares by the selling shareholders.