9th Oct 2014 06:40
LONDON (Alliance News) - Old Mutual PLC Thursday said the initial public offering of its subsidiary OM Asset Management Ltd, the holding company for its US-based institutional asset management business, has been priced below the range it guided in September when the sale process was launched.
In a statement, FTSE 100 financial services group Old Mutual said the 22 million shares have been priced at USD14.00 per share. Old Mutual had intended to sell the 18.3% stake at a range between USD15.00 and USD17.00.
The sale will results in a USD308 million realisation for Old Mutual, with the proceeds after offering costs to be used for general corporate purposes.
In a statement, OM Asset Management said its shares are expected to begin trading on Thursday on the New York Stock Exchange under the ticket symbol OMAM.
The offering is expected to close on October 15.
The underwriters have a 30-day option to purchase up to an additional 3.3 million shares from Old Mutual at the IPO price, less the underwriting discount, to cover over-allotments, if any.
Bank of America Merrill Lynch, Morgan Stanley, Citigroup and Credit Suisse are acting as joint bookrunning managers for the offering.
By Samuel Agini; [email protected]; @samuelagini
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