Genworth's mortgage insurer Enact IPO prices at bottom of expectations
16/09/2021 12:11
** Enact Holdings Inc ACT.O late Weds said IPO of ~13.3
mln shares priced at $19, bottom of $19-$20 expected range, for
total raise of ~$253 mln urn:newsml:reuters.com:*:nPnbxshXPa
** U.S. mortgage insurance (MI) unit of Genworth Financial
GNW.N will not receive any IPO proceeds, as all shares were
sold by GNW, which still retains ~83% stake in ACT
** Bayview Asset Management agreed to buy ~14.7 mln shares
from GNW in concurrent private placement if IPO priced below
$22, per prospectus filing https://www.sec.gov/Archives/edgar/data/1823529/000162828021018423/enactholdingsincs-1a4.htm#i5fdf7c97d07749abb66ed6c9764e7929_163
** Enact shares to debut on Thurs on Nasdaq with ticker
"ACT"
** GNW had postponed the spin-off IPO in May due to
volatility, with CEO Tom McInerney saying market pricing didn't
accurately reflect Enact's value urn:newsml:reuters.com:*:nL1N2QF11H urn:newsml:reuters.com:*:nL4N2QF34A
** ACT valued just north of $3 bln at $19 IPO price
** GNW shares on Weds closed at $3.66 for ~$1.9 bln market
cap, per Refinitiv data
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))