OMAM, as the London-based firm is known, fell to $13.95 at 4 p.m. in New York. Parent Old Mutual Plc is selling 22 million shares, an 18.3% stake, in an IPO originally priced in a range of $15 to $17 a share. OMAM owns specialist money managers overseeing about $215 billion in assets, according to the company’s first-half figures.
The IPO is expected to close on October 15, OMAM said today in a statement, and underwriters have a 30-day option to purchase as much as 3.3 million more shares from Old Mutual.
Old Mutual started in Cape Town in 1845. It moved its primary listing to London in 1999 to gain access to global capital markets as it expanded outside of Africa. The insurer is now focused on selling life insurance in fast-growing African countries such as Kenya and long-term savings products in the U.K. after cutting costs, disposing of assets and paying down debt to return to profit after the financial crisis.