The US Insurance unit of ING Groep NV, ING US Inc is planning to raise nearly US$1.54 billion in its initial public offering. In contrast, its Dutch parent firm would be focusing its operations at home.
Both division and parent are offering 64.2 million shares between US$21 and US$24 per share according to regulatory documents filed by the US subsidiary. After the IPO, the Amsterdam based parent firm would retain 75% of the ING US. There is also a plan to rename the US unit to Voya Financial after the IPO.
If the valuation of shares would be at the midpoint of the price range, the US unit would be worth US$5.78 billion according to Bloomberg data. The IPO is part of the bailout package received in 2008, where ING Groep was obliged to divest its shareholdings. Furthermore, the record levels of US stock prices have moved the company into selling the shares.
At the valuation of US$5.78 billion, the US unit would have traded 42% of book value, which is a measure of assets less liabilities. This is lower than its competitor, MetLife Inc, the largest life insurer in the US with a 60% book valuation.
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