|
Phoenix IPO expected
|
 |
June 1, 2001: 6:30 p.m. ET
Insurance firm set to demutualize, follows Prudential in IPO rush
|
NEW YORK (CNNfn) - Phoenix Home Life Mutual Insurance Co. received regulatory approval Friday to demutualize, a move that opens the way for an IPO later this year.
The New York State Superintendent of Insurance gave its approval for Phoenix to change to a stock life insurance company. The demutualization will become effective upon completion of the Phoenix IPO that is expected mid-year, the company said in a statement.
"Today's approval, along with our policyholders' approval in April, allows us to move forward to the final step of becoming a public company," said Phoenix CEO and Chairman Robert Fiondella.
The Phoenix conversion is the latest insurance company to go public. Prudential Financial Inc., the No. 2 U.S. life insurer, in April filed to raise $3.9 billion. Newark, N.J.-based Prudential Financial plans to sell 89 million shares via lead underwriters Goldman Sachs and Prudential Securities Inc. However, Prudential has yet to set a price range for the deal.
Companies that demutualize convert from member to stock ownership and can choose a variety of options to do so. In the most popular, a full demutualization, the company unbundles policyholders' equity and ownership, giving them either cash, stock or policy credits.
Last week, Phoenix revised the terms of its IPO which can now raise up to $830 million.
Phoenix now plans to offer 48.8 million shares, down from 62.5 million shares filed earlier this month, at $14.50 to $17 each, up from $9 to $16 range, via lead underwriters Morgan Stanley and Merrill Lynch. The company had initially filed in February to raise as much as $866 million. Hartford, Conn.-based Phoenix offers life insurance, variable annuity and investment management services that target the affluent and high net worth market. Phoenix products are sold through advisors and financial services firms.
The IPO price must still be approved by the Superintendent, Phoenix said Friday. Within 45 days, about 500,000 policyholders will receive cash, stock or policy credits as compensation for giving up its membership rights.
Phoenix Home Life will change its name to Phoenix Life Insurance Co. and will serve as a unit of The Phoenix Cos. Inc.
Phoenix will trade on the New York Stock Exchange under the "PNX" symbol. 
|
|
|
|
|
 |
|
