Enact Holdings Inc. has announced that it has commenced an initial public offering (IPO) of 13,310,400 shares of common stock. The shares are being offered by the selling stockholder, Genworth Holdings Inc., a wholly-owned subsidiary of Genworth Financial Inc. The IPO price is expected to be between $19 and $20 per share, and is expected to trade on the Nasdaq Global Select Market under the ticker symbol “ACT.”
Enact is a mortgage insurance provider offering products through a number of subsidiaries since 1981.
In addition to the shares being sold in the IPO, Bayview Asset Management LLC has agreed to purchase shares of Enact in a concurrent private sale at a price per share equal to the initial public offering price less the underwriting discount per share. It has agreed to purchase 14,655,600 shares of common stock if the IPO price is less than $22 or four million shares if the price is between $22 and $24 a share. The private sale is contingent upon the IPO, and is subject to customary closing conditions.
Enact has previously scheduled this IPO in May, but postponed it due to volatility in the mortgage insurance market. In addition, the company completed a top-down rebranding from the previous name Genworth Mortgage Holdings. The company remains headquartered in Raleigh, North Carolina.