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Highlights
- As per the Enact IPO plans, 13.3 million shares will be sold through the offering and two million shares will be kept for underwriting.
- The total gross proceeds from Enact IPO including the underwriting options could value US$ 306 million.
- Enact shares will trade on the Nasdaq Global Select Market.
The Raleigh-based private mortgage insurance provider Enact Holdings, Inc. has announced that it is looking to go public in the US equities market. The much-awaited spin-out of Genworth Financial is back on as earlier the public debut plans had not materialized.
This time, the private mortgage insurance providers have reportedly reduced the size and expected price range of the common stock offering. Enact Holdings is planning to sell 13.3 million shares and will keep two million shares for underwriting.
The price range of the shares would be between US$ 19 to US$ 20 per share. Earlier, when the company had announced its initial public offering plans in May 2021, Genworth had planned to sell 22.6 million shares and had kept 3.4 million shares for underwriters. The price range of the shares at that time was kept between US$ 20 to US$ 24 apiece.
Genworth had canceled the IPO plans a few days later citing volatility in stock prices of four independent companies in the private mortgage insurance sector -- Essent Group, NMI Holdings, Radian Group, and MGIC Investment.
Here's what you need to know about Enact IPO
If sold at the maximum price, the total gross proceeds including the underwriting options could value US$ 306 million and the money raised will be paid to Genworth Holdings, which is the parent company of Enact Holdings.
According to reports, the money from gross proceeds will be used to repay Genworth's outstanding debts and promissory notes generated from a legitimate settlement with AXA in the United Kingdom.
As per the documents filed with the Securities and Exchange Commission, 665,520 IPO shares will be reserved for a few Enact and Genworth directors, officers, and selected employees.
Enact shares will trade on the Nasdaq Global Select Market and will trade under the stock symbol ‘ACT’. If the regulatory authorities approve the documents, the mortgage insurance could go public by the end of this year.
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Bottom line
According to the prospectus filed with the regulatory authorities, Enact Holdings is on a growth path. For the first half of this year ending June 30, 2021, the private mortgage insurer's net income increased to US$ 255.9 million from US$ 141.2 million in the same comparable period.
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As of June 30, 2021, the revenues increased to US$ 564.7 million, up from 536.6 million in the same period of 2020.
