Stock Groups

Genworth’s Enact valued at $3.26 billion as share rise in Nasdaq debut By Reuters


© Reuters.

(Reuters] – Enact Holdings Inc shares, which is the mortgage insurance arm of Genworth Financial Inc (NYSE :), traded more that 5% higher during Thursday’s Nasdaq debut, giving it a market capitalization of $3.26 Billion.

The shares opened at $20, which is a significant increase from their $19 initial public offering (IPO) price.

This debut follows Enact’s IPO revival by parent Genworth. The company had delayed the offer in May due to excessive volatility.

Genworth raised about $253million by selling 13.3 million Enact shares during the listing. The shares were listed at $19 to $20 per share, which was below the average range. Enact won’t receive any proceeds, but Genworth will still hold the majority share.

Bayview Asset Management purchased 14.7million shares of Enact’s stock through a private placement. According to Reuters calculations, the stock was worth $278.5million according to Enact’s Wednesday statement.

Genworth listed Enact following the failure of the Chinese Oceanwide Holdings Group Co’s $2.7billion buyout deal with Genworth, billionaire Lu Zhiqiang’s investment company.

This deal, which was originally planned in October 2016, has been held up for several years because of concerns about China accessing U.S. citizens’ sensitive data.

Enact, a credit protection company that provides credit protection for mortgage investors and lenders, was founded in Raleigh, North Carolina in 1981. It is available in all 50 states of the United States and in the District of Columbia.

Enact’s net policies were written at $99.9 trillion in 2020, up from $62.4 billion one year ago. Due to increased loss reserves due to the COVID-19 pandemic, Enact’s profit dropped by approximately 45%.

J.P. Morgan (NYSE:), and Goldman Sachs were the bookrunners.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs include futures, stocks, indexes and Forex. Prices are provided not by the exchanges. They are generated by market makers. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.