Genworth Values Mortgage Insurer Enact Holdings at $3.3 Billion in IPO

Richmond, Va.-based Genworth Financial, Inc. announced Monday that its wholly-owned subsidiary, Enact Holdings, Inc., plans to offer 13.3 million shares priced at $19 to $20 each in its upcoming initial public offering. This would value the mortgage insurer at up to $3.3 billion. The company said all shares will be sold by Genworth and it will not receive any proceeds.

(Enact), has amended its registration statement on Form S-1 with the U.S. Securities and Exchange Commission (the SEC) in connection with its proposed initial public offering. In that filing, Enact states the following regarding the use of proceeds:

“As selling stockholder, Genworth Holdings, Inc. (GHI) will receive all net proceeds from the sale of shares of Enact’s common stock,” the company said in a press release. GHI currently intends to use net proceeds to repay its Promissory Note with AXA and partially repay other outstanding indebtedness.”

The company had a net income of $255.9 million in the six months through June 30, up from $141.2 million in the year-earlier period, according to reports.

The IPO was originally scheduled for May of this year, but Genworth postponed the offering, citing “volatility.”

“In light of the recent significant trading volatility in the mortgage insurance (MI) sector, Genworth’s Board of Directors determined that current market pricing for the planned offering does not accurately reflect Enact’s value. Therefore, we have decided to postpone the IPO and will continue to evaluate our options as market conditions develop,” said Tom McInerney, Genworth President and CEO. “Our primary objective has been and will continue to be protecting the value of Enact. We maintain our positive long-term outlook for the MI sector, given strong trends in the U.S. housing market and expected tailwinds as the economy recovers from COVID-19.”