NU Online News Service, June 20, 10:15 a.m. – Phoenix Home Life Mutual Insurance Company, Hartford, says its new, for-profit holding company, The Phoenix Companies Inc., is now selling 48.8 million shares of common stock to the public at a price of $17.50 per share.
Shares are trading under the symbol PNX.
The Phoenix Companies will acquire Phoenix Home Life by distributing 56 million shares of common stock to 500,000 Phoenix Home Life policyholder owners, then using the proceeds from the public stock sale to pay cash to any policyholder owners who are owed cash.
The Phoenix Companies hopes to complete Phoenix Home Life?fs conversion to a stock charter, from a policy-based mutual charter, June 25, Phoenix Home Life says.
A mutual insurance company is a company owned by its policyholders. Phoenix Home Life has been working for more than a year to convert from policyholder ownership to stock ownership.
The demutualization should help Phoenix raise capital for expansion from Wall Street investors, according to Phoenix Home Life executives.
If Phoenix Home Life succeeds at selling all Phoenix Companies shares offered, it should raise a total of $854 million and net proceeds of about $808 million.
The company had previously estimated its initial public offering might raise anywhere from $738 million to $872 million.
Morgan Stanley Dean Witter & Company, New York, is the lead manager for the IPO.