MGIC Investment (NYSE: MTG ) now has the potential to swell into a larger company. In a special shareholder meeting held today, its investors approved a measure to boost the number of authorized common shares to 1 billion, from the current 680 million. This will take the form of an amendment to the firm's articles of incorporation. MGIC investment said that 96% of the votes cast were in favor of the move.
In a press release issued last month announcing today's special meeting, MGIC Investment said two recent capital-expanding moves "reduced the number of shares of Common Stock available for future issuance," hence the need for the expansion.
This past March, MGIC Investment floated 135 million shares of common stock in a public offering. Concurrently, it also issued 2% convertible notes maturing in 2020. All told, the company netted proceeds of roughly $1.15 billion from both flotations.
Of the firm's current 680 million authorized shares, nearly 338 million are outstanding. At the moment, the company trades at $6.29 per share.