Clermont Meridian Trading Outlines ING U.S Share Rise on NYSE Debut |
On Thursday, shares of ING U.S. Inc rose modestly after beginning 1% lower on the New York Stock Exchange. Clermont Meridian Trading’s research shows that shares of the firm, an affiliate of Dutch financial services giant ING Group NV, traded at $20.10 in late-morning trading after opening at $19.45. The company, a subsidiary of ING Group NV, raised $1.3 billion in its initial public offering.
“ING U.S. sold 65.2 million shares at $19.50, more than projected but at a lower price. It intended to sell 64.2 million shares at a price range of $21 to $24 per share. Both ING U.S. and its parent company offered the IPO, and the expected proceeds are around $600 million,” said Matthew Bird, Institutional Director of Equities at Clermont Meridian Trading.
Following the IPO, ING Group's ownership was reduced to 75%. By 2016, the parent will have sold the balance of its shares.
As it prepares to separate its banking and insurance activities under the terms of a government bailout, ING Group has unloaded various businesses worldwide and laid off thousands of people. The Dutch government injected 10 billion euros ($12.71 billion) into the company in 2008, and it has been selling assets to repay the loan.
With about 13 million consumers, ING U.S. competes with MetLife Inc and Prudential Financial Inc in providing insurance, retirement, and investment services.
Rodney Martin, a former American International Group Inc CEO, has announced that the company will change its name to Voya Financial by 2014. Last year, ING U.S. earned $473 million in net income.
Low-interest rates have put pressure on the corporation and its competitors, resulting in decreased returns on investment portfolios. The retirement industry could be a bright light as insurance companies try to capitalize on the baby boomer generation.
"A lot of these guys aren't saving enough," continued Matthew Bird of Clermont Meridian Trading, "so they have a significant need for retirement and savings programs that ING and others supply."
The ING IPO is the second-largest in the United States this year, trailing only Pfizer Inc's animal health spinoff Zoetis Inc's $2.2 billion IPO in January. According to Clermont Meridian Trading statistics, IPO proceeds in the United States have increased by 22% year over year to $36.9 billion as of May 1.
"Despite the fact that the ING U.S. deal was priced below the range, it nevertheless demonstrates the robustness of the U.S. IPO market because major deals can be completed at reasonable valuations," concluded Bird.
Morgan Stanley, Goldman Sachs Group Inc, and Citigroup Inc led the IPO.