Genworth (GNW) Prices Canadian IPO at C$19/Share
Down)
Last night, Genworth Financial, Inc. (NYSE: GNW) announced that its Canadian mortgage insurance subsidiary, Genworth MI Canada Inc., has priced its initial public offering in Canada of 44.7 million common shares at Cdn$19.00 per share. The closing is scheduled for July 7, 2009, subject to customary closing conditions, after which the shares of Genworth MI Canada will begin trading on the Toronto Stock Exchange under the symbol "MIC".
The IPO will generate net proceeds to Genworth Financial of approximately US$635-730 million (net of underwriting commissions, taxes and other items), depending on whether the over-allotment option granted by Genworth to the underwriters is exercised, and to what extent. In addition, as a result of the IPO, Genworth MI Canada will retire all outstanding debt and further enhance its well-capitalized financial position.
The over-allotment option granted by Genworth to the underwriters is exercisable for a period of 30 days following closing to purchase up to 6.7 million additional common shares at a price of Cdn$19.00 per share. If the underwriters' over-allotment option is exercised in full, Genworth Financial would have a 56 percent ownership interest in Genworth MI Canada Inc.
The IPO will generate net proceeds to Genworth Financial of approximately US$635-730 million (net of underwriting commissions, taxes and other items), depending on whether the over-allotment option granted by Genworth to the underwriters is exercised, and to what extent. In addition, as a result of the IPO, Genworth MI Canada will retire all outstanding debt and further enhance its well-capitalized financial position.
The over-allotment option granted by Genworth to the underwriters is exercisable for a period of 30 days following closing to purchase up to 6.7 million additional common shares at a price of Cdn$19.00 per share. If the underwriters' over-allotment option is exercised in full, Genworth Financial would have a 56 percent ownership interest in Genworth MI Canada Inc.
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