Genworth Subsidiary Sets Share Price for Canadian IPO

Thu. July 02, 2009; Posted: 03:12 PM

RICHMOND, Va., Jul 02, 2009 (A. M. Best via COMTEX) -- GNW | Quote | Chart | News | PowerRating -- Genworth Financial Inc.?s Canadian mortgage insurance subsidiary has priced its initial public offering in Canada of 44.7 million common shares at C$19.00 (US$16.37) per share, the company said.

The IPO for Genworth MI Canada Inc. is expected to raise, net after taxes, between US$635 million and US$730 million, depending on whether and to what extent the over-allotment option granted to the IPO underwriters to buy up to 6.7 million shares is exercised, the company said in a statement.

Genworth will retain between 51% and 56% ownership, depending on the use of the over-allotment. The closing of the IPO is scheduled for July 7, after which the shares will trade on the Toronto Stock Exchange under the symbol MIC, the company said.

In announcing the IPO in May, the company said it planned to maintain its majority position for the foreseeable future.

At that time Michael D. Fraizer, chairman and chief executive, said the IPO would provide Genworth with ?additional financial flexibility.? In April, Genworth Financial missed a U.S. Treasury Department deadline to receive funding through the department's Capital Purchase Program (BestWire, June 1, 2009).

Genworth Life & Annuity Insurance Co. currently has a Best's Financial Strength Rating of A (Excellent).

Shares of Genworth Financial Inc. (NYSE: GNW | Quote | Chart | News | PowerRating) were $6.33 in afternoon trading on July 2, down 7.4% from the previous close.

(By Alyn Ackermann, senior associate editor, BestWeek: Alyn.Ackermann@ambest.com)

For full details on Genworth Financial (GNW) click here. Genworth Financial (GNW) has Short Term PowerRatings of 5. Details on Genworth Financial (GNW) Short Term PowerRatings is available at This Link.

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