The size and price of the sale will be determined after investor meetings, the London-based insurer said in a statement Tuesday. Bank of America Merrill Lynch, Morgan Stanley, Citigroup Inc. and Credit Suisse Securities (USA) LLC are the global coordinators and joint book-runners.
Old Mutual, which retains a 78.8% stake in OMAM, as it’s known, sold 22 million shares in New York in an IPO originally priced in a range of $15 to $17 a share. The stock closed on Monday at $18.99, valuing the unit at $2.29 billion.
Old Mutual started in Cape Town in 1845. It moved its primary listing to London in 1999 to gain access to global capital markets to help its expansion outside 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. while running asset management operations in South Africa, the UK, and the US.
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