Bank IPO Kicks Off Below Expected Range

Before you go, we thought you'd like these...
Before you go close icon

BankING U.S. Inc. (NYSE: VOYA) held its initial public offering (IPO) today and the U.S. insurance arm of Dutch-based ING Groep N.V. (NYSE: ING) raised $1.27 billion at an IPO price of $19.50 a share for 65.2 million shares issued. That is the second-largest IPO in the United States so far this year, but it is a disappointment for ING, which had hoped to sell the shares in a range of $21 to $24. The company will rebrand itself as Voya Financial.

The IPO was imposed on the company as a condition of a €10 billion bailout from the Dutch government in 2009. Now that the IPO is completed, the parent company will once again be allowed to pay a dividend to stockholders.

ING U.S. will use net proceeds of about $568 million from the IPO to reduce the €7 billion or so of double-leveraged debt and to repay the remaining €2.2 billion loan from the Dutch government.

Shares are trading up about 0.5% at $19.55 after the first half-hour of trading today.


Filed under: 24/7 Wall St. Wire, Banking & Finance, IPOs Tagged: featured, ING, VOYA
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Man Is Horrified To Learn His Biological Father's Identity - But A Look In The Mirror Man Is Horrified To Learn His Biological Father's Identity - But A Look In The Mirror
Nature Gets Revenge On Safari Hunter Who Killed Elephants And Lions For Sport Nature Gets Revenge On Safari Hunter Who Killed Elephants And Lions For Sport
12 Facts That Will Make You Smarter Than Your Friends 12 Facts That Will Make You Smarter Than Your Friends