(March 23 – 09:40 ET) – A few of the big insurers are tapping into the public markets heavily today, led by Sun Life Financial Services of Canada Inc.’s $1.8 billion initial public offering.
Sun Life’ s IPO completes the planned demutualizations that began last year. It came out at $12.50 per share and carries a total market capitalization of $5.0 billion. The shares are will trade simultaneously on the Toronto Stock Exchange and New York Stock Exchange under the ticker symbol “SLC”. It is also opening on the London Stock Exchange under the ticker symbol “SFC” and on the Philippine Stock Exchange as the symbol “SLC”.
Sun Life reports that of the total 143.6 million common shares offered, 46 million are being offered by Sun Life Financial Services of Canada Inc. to fund payments to policyholders and 97.5 million shares are being sold by policyholders in the U.S., the Philippines, the U.K., Hong Kong and elsewhere.
The underwriters have a 30-day over-allotment option on 21.5 million shares. The global bookrunner for the offering is Morgan Stanley & Co. Inc., it is joined by local shop RBC Dominion Securities Inc. as the global co-ordinators for the deal.
While Sun Life is obviously the big news Clarica Life Insurance Co., which did its IPO last year, has gone back to the well. The firm says it has completed its offering of $150 million non-cumulative redeemable class A preferred shares. The shares were priced at $25 each and will initially yield 6.50% annually.
The deal was underwritten by a syndicate led by BMO Nesbitt Burns Inc. Nesbitt was joined by RBC Dominion Securities Inc., Scotia Capital Inc., TD Securities Inc., CIBC World Markets Inc., Merrill Lynch Canada Inc. and National Bank Financial Inc.
-IE Staff