NU Online News Service, Oct. 30, 11:06 a.m. – Anthem Insurance Companies Inc., Indianapolis, a large managed care company, began a successful initial public offering this morning while the prices of other U.S. stocks slumped.
Anthem is selling 48 million shares of stock in a new holding company, Anthem Inc., at a price of $36 each, through an IPO that is scheduled to end Nov. 2. The shares are trading on the New York Stock Exchange under the symbol ATH.
At 11 a.m., the New York Stock Exchange Composite Index was down 1.54%, but the price of Anthem shares had risen 12.72%, to $40.58.
Anthem hopes to raise $1.8 billion through the stock IPO and a related offering of securities units. The IPO and charter conversion should leave Anthem with a total of 102 million shares of outstanding stock, the company says.
The IPO will give Anthem a “market capitalization” value, or total value of all outstanding stock, of about $4 billion.
The Goldman Sachs Group Inc., New York, is leading the underwriting team.
Anthem has been doing business as a policyholder-owned mutual life insurer since 1944, when it was formed as Mutual Hospital Insurance Inc.