RenaissanceRe Holdings Ltd.'s initial public offering (IPO) has generated almost $50 million in new capital, the Bermuda-based reinsurer announced yesterday.

The IPO, which included 2.7 million common shares sold at $19.50 per share, generated $48,951,000, the company said.

"We are very pleased the offering was fully subscribed and we are pleased with the trading price,'' said RenaissanceRe senior vice president and CFO Mr.

Keith Hynes.

Proceeds will pay down a portion of the company's $120 million outstanding revolving credit facility set up in connection with initial capitalisation.

"The share sale will be used to pay down debt and allow the company to be traded publicly,'' he said.

The stock, quoted on the Nasdaq national market under the symbol RNREF, first traded yesterday.

The stock closed at its high of $21.50 in its first day of trading.

The company had indicated plans to go public about 18 months ago but opted against the move, citing a poor investment climate.

Before the offering, there were 22.5 million shares held by the company's co-founders; investment management company Warburg, Pincus Investors LP, GE Investment Partners, the trustees of General Electric pension trust and United States Fidelity and Guaranty Co. as well as management.

The five founders set up the reinsurer in June 1993 with a reported $141.2 million in capital.

The offering, filed with the Securities and Exchange commission on October 6, 1994, was underwritten by Merrill Lynch & Co., Alex Brown & Sons and Lehman Brothers.

The shares were sold in the US and UK.

Bloomberg Business News said the IPO's gross spread, the difference between the price paid to the issuer and the price at which the shares were sold, was $1.37. Selling concession was 82 cents while management fee, underwriting fee and reallowance were 28, 27 an ten cents respectively.

RenaissanceRe Holdings, through its wholly-owned subsidiary Renaissance Reinsurance Ltd., provides property catastrophe reinsurance to selected insurers and reinsurers worldwide.