Genworth Financial Prices IPO At $19/Share

Financial security company Genworth Financial Inc. (GNW: News ) announced Monday that it has priced the initial public offering or IPO in Canada of 44.7 million common shares of its Canadian mortgage insurance subsidiary, Genworth MI Canada Inc., at C$19.00 per share. Pursuant to the closure of the offering, the shares of Genworth MI would trade under the "MIC" symbol on the Toronto Stock Exchange. The company noted that subject to customary closing conditions, the IPO is scheduled to close on July 7, 2009.In a statement, chairman and chief executive officer of Genworth Financial,Michael Fraizer said, "This IPO reinforces our already sound financial foundation and provides additional capital flexibility to Genworth. 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."The Richmond, Virginia-based company noted that the IPO would generate total gross proceeds of about C$850 million, or net proceeds of about US$635 to US$730 million. Genworth MI Canada would receive proceeds of about C$97 million, while about US$753 million would be received by Genworth Financial.The proceed from the offering would be used to retire all outstanding debt and further enhance Genworth MI's well-capitalized financial position. Pursuant to the offering, Genworth MI Canada would have a market capitalization of about C$2.2 billion.The company noted that of the 44.7 million common shares being offered, 5.1 million shares are being sold by Genworth MI Canada, and 39.6 million shares are being sold by Genworth Financial, Genworth MI Canada's parent company.
CIBC World Markets, Goldman Sachs Canada and Scotia Capital were joint lead underwriters for this offering.