April 17 Life and mortgage insurer Genworth
Financial pushed back the initial public offering of its
Australian mortgage insurance unit due to unfavorable market
conditions in the country, sending its stock down 6 percent in
trading after the bell.
Genworth said it now aims to complete the IPO of 40 percent
of the unit in early 2013. It had initially expected to complete
the offering in the second quarter of this year.
The company, which has been hurt by troubles in its U.S.
mortgage insurance business, planned to offer the stake in the
Australian unit as a way to boost its capital.
Genworth, once part of industrial conglomerate General
Electric, also said it expects foreclosure rates and
claims in Australia to be higher in the first quarter.
It expects the Australian business, one of the bright spots
in its mortgage insurance segment, to post a modest first
In January, a media report said the company had shortlisted
Macquarie Group, UBS and Commonwealth Bank of
Australia as joint lead managers of the planned A$800
million ($850 million) float.
There has been a drought in Australian IPO market with the
last big deal being QR National's A$4.6 billion IPO in
late 2010. A successful listing of the Genworth unit this year
would have been taken as a sign that investors, wary of global
economic uncertainty so far, were coming back.
Shares of the Richmond, Virginia-based company were down 6
percent at $7.22 in extended trade. They had closed at $7.70 on
Tuesday on the New York Stock Exchange.