Raleigh-based Enact Holdings launches initial public offering

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RALEIGH – Enact Holdings, Inc., a Raleigh-based provider of private mortgage insurance (PMI), announced this week that it would begin an initial public offering.

Enact announced in a statement that all 13,310,400 shares of common stock will be offered by selling stockholder Genworth Holdings, Inc, a subsidiary of Genworth Financial, Inc. and noted that net proceeds from the offering will be routed to Genworth Holdings.  Shares will be priced at between $19 and $20, the company said in a statement.  MarketWatch noted in a report that at the top of that range, the company would be valued at about $3.3 billion.

Shares are expected to trade on the Nasdaq Global Select Market under ticker symbol “ACT,” the statement noted.

The company also shared that investment funds managed by Bayview Asset Management, LLC will also purchase shares of Enact common stock from Genworth Holdings, with specific terms noted in a statement that reads: “Bayview has agreed to purchase (i) 14,655,600 shares of Enact’s common stock if the initial public offering price is less than or equal to $22.00 per share; or (ii) 4,000,000 shares of our common stock if the initial public offering price is greater than $22.00 per share but less than or equal to $24.00.”

According to reporting from MarketWatch, “proceeds will be used to repay a promissory note with Axa and other debt.”  According to MarketWatch, net income year to date was $255.9 million, up from $141.2 million during the same period a year prior, with revenue growth increasing from $536.6 million to $563.7 million.

 

 





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Kassie Hoffman
Kassie pens down all the news from the world of politics on ANH.