Genworth Financial’s corporate headquarters is in Henrico County.
Henrico County-based insurance giant Genworth Financial Inc. has started an initial public offering of stock in its mortgage insurance business.
Genworth Mortgage Holdings Inc. plans to raise as much as $541 million by offering 22.57 million shares at a price range of $20 to $24 in the business unit that sells insurance covering home mortgage loan defaults.
All of the shares are being offered by Genworth Holdings Inc., a wholly owned subsidiary of Genworth Financial. Net proceeds from the offering will go to Genworth Holdings, which will retain about an 80% ownership in the mortgage unit, a spokesperson for Genworth said.
The Raleigh, N.C.-based business unit also is rebranding, changing its name to Enact Holdings Inc. Shares are expected to trade on the Nasdaq Global Select Market under the ticker symbol “ACT.”
Genworth, which has thousands of employees in Virginia, is pursuing the IPO to pay off debts after the company canceled its long-delayed plan to be acquired for $2.7 billion by a China-based investment company.
In addition to the shares being sold in the IPO, Genworth said certain investment funds managed by Bayview Asset Management LLC have agreed to purchase 4 million shares of Enact’s common stock from Genworth Holdings in a concurrent private sale at a price per share equal to the initial public offering price less the underwriting discount per share.