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RICHMOND — Genworth Financial Inc. said Tuesday that an initial public offering of 44.7 million shares of its Canadian mortgage insurance operations priced at 19 Canadian dollars ($16.35) per share.
Genworth, which filed a preliminary prospectus for the IPO in May, said at the time that it would sell up to 49 percent of its ownership interest in Genworth MI Canada Inc. in order to raise cash.
Proceeds from the IPO are expected in a range of about $635 million to $730 million, depending on whether the underwriters exercise their overallotment option.
The overallotment option allows the underwriters to buy up to an additional 6.7 million shares at the initial price. Genworth Financial will have a 56 percent stake in the Canadian arm if the option is exercised in full.
"We'll receive a meaningful level of capital through the transaction and continue to benefit from the earnings associated with our majority ownership position in Genworth MI Canada," Chairman and CEO Michael D. Fraizer said in a statement.
Genworth, a former subsidiary of General Electric Co., saw its shares plunge in April after it failed to qualify to participate in the government's $700 billion financial rescue program. In the year to date, however, the stock has more than doubled.
Investors have been worried that Genworth and other struggling insurance companies would be the next part of the financial industry to need help after banks, as the stock market hurt their investment portfolios.
Genworth Financial's stock shed 7 cents to $6.29 in morning trading.
