The Genworth turkey fattens up


Here’s one to make the you lick your lips, from the AFR, the Genworth float is flying:

According to sources, strong demand from international and domestic investors means Genworth’s US parent is unlikely to take advantage of a mechanism to buy back shares under a so-called greenshoe arrangement.

The mortgage insurer issued 220 million share and reserved 20 million as part of a post-launch stabilisation plan.

It’s understood Genworth Australia was covered by the close of trade at a price-to-book of .75 times, equating to a share price of $2.55. That would equate to a raise of $560 million, close to the top of its targeted $484 million to $638 million range.

I quietly believe that this company will be nationalised within five years!

David Llewellyn-Smith


  1. mine-otour in a china shop

    The Turkeys might be fattening up nicely, but ignoring the foxes that circle them when they are let loose is a dangerous investment game.

    All those gamblers who buy up the offering must be praying that APRA/RBA and Government will continue to prop the up and will be there for them in a crisis.

    Nice move by the parent company to offload these extreme risks to others.

  2. Diogenes the CynicMEMBER

    I am amazed that this Turkey had wings enough to fly.

    Then I usually underestimate the stupidity and greed of some fellow members of my species.

  3. Anybody who invests in a company that earns 50% of its revenue from one client deserves what is coming to them.

    If you hold bank shares and buy Genworth you are betting against yourself IMHO. And if you also own investments properties well……..

    You simply have to ask yourself why the parent is looking to sell.