Essent Group Ltd. has commenced a public offering of 5 million common shares.

The underwriter, Barclays, will have the option to buy up to 750,000 additional common shares from the company.

Based on the Aug. 7 closing price of $40.66, and assuming the underwriter fully exercises its option to buy additional shares, S&P Global Market Intelligence calculates gross proceeds from the offering of $233.8 million.

Essent Group plans to use the net proceeds from the offering for general corporate purposes, which may include capital contributions to support the growth of its insurance subsidiaries, as well as to reduce borrowings owed by the company under a certain credit facility.