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!
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