Old Mutual Launches IPO For US-based Unit

 Mzwandile Jacks Economic Development & Policies, Intelligent Investing, International, Investing

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VENTURES AFRICA – Old Mutual had launched an initial public offering (IPO) of its US-based institutional asset management business, Old Mutual Asset Management (OMAM), the international wealth manager said on Tuesday. It is set to dispose of 18.3 percent or 22 million ordinary shares of OMAM at $15.00 and $17.00.
An IPO refers to the first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand.
However, IPOs can also be done by large privately-owned companies seeking to become publicly traded. “Old Mutual has also granted the
underwriters a 30-day over-allotment option to purchase up to an additional 3,300,000 shares,” Old Mutual said.
“The ordinary shares have been approved to trade on the New York Stock Exchange under the symbol OMAM,” it said.
OMAM was kept in the Old Mutual stable after Old Mutual sold its underperforming US Life operations in that country to a hedge fund manager, Harbinger Capital Partners LLC (Harbinger), for $350 million five years ago.
This came after the board of Old Mutual fired former CEO Jim Sutcliffe for the write-downs running to billions of dollars that US Life had incurred.
When the first write-down was incurred, Sutcliffe was so livid that he told this correspondent that heads would roll at US Life, accusing some executives of failing to do their jobs.
The sale of US Life went through under the leadership of the newly-appointed CEO, Julian Roberts, who felt that the sale marked further progress towards Old Mutual’s strategic objectives of simplifying the group, lowering its risk profile and improving its returns on equity.