Genworth MI Canada announced Tuesday it will sell 44.7 million common shares at $19 each as part of an initial public offering to raise money for its parent company, Genworth Financial.
The insurer has also given underwriters the option to purchase up to 6.7 million additional common shares, which, if taken full advantage of, would bring total proceeds from the offering to $977 million. The closing of the underwriting agreement is scheduled for July 7, after which the shares of Genworth MI Canada will trade on the Toronto Stock Exchange under the symbol "MIC".
"This IPO reinforces our already sound financial foundation and provides additional capital flexibility to Genworth," said Genworth Financial chairman and CEO Michael Fraizer. "At the same time, we will continue to benefit from the earnings associated with our majority position in Genworth MI Canada as it plays an important role in providing solutions to the housing finance market in Canada."
While Genworth Financial will receive the majority of the IPO proceeds, Genworth MI Canada will be given approximately $97 million to clear debt and build business, the statement said.