* Plans to sell 64.2 mln shares at $21-$24 each
* Shares to begin trading May 2 - source
* Morgan Stanley lead-left underwriter for the IPO
* Goldman Sachs, Citigroup among lead bookrunners
By Aman Shah and Ashutosh Pandey
April 16 Dutch financial services group ING
Groep NV's unit ING U.S. plans to price shares in its
IPO at between $21 and $24 each, valuing the company at up to
$6.16 billion in what could be the second-largest public
offering this year.
The IPO could raise as much as $1.54 billion. Pfizer Inc's
animal health unit Zoetis Inc raised $2.2
billion in its February IPO.
"The price is some what consistent with what the management
has said before. Given the current environment, this might be a
price that may be achievable," Morningstar analyst Vincent Lui
ING Group's ownership in ING U.S. will reduce to 75 percent
after the IPO.
ING Groep is splitting its banking and insurance operations
as part of a restructuring deal with the European Commission,
turning into a smaller Europe-focused bank.
The group received a 10 billion euro ($12.71 billion)
capital infusion from the Dutch Government in 2008 and has been
selling assets to repay the bailout. It sold its U.S. online
banking business ING Direct for nearly $9 billion to Capital One
Financial Corp in 2011.
ING U.S., which provides insurance, retirement and
investment services, expects the IPO to sell 64.2 million shares
of common stock, the company said in a regulatory filing on
"The company had a big loss in 2008 and is a type of company
that potentially exposes investors to big risks," Jay Ritter, a
University of Florida IPO expert, told Reuters.
"Based upon its earnings of $2.06 per share in 2012, the
price range of $21-$24 is valuing at a conservative price
earnings ratio of 11."
The IPO will consist of a primary component offered by ING
U.S. and a secondary component offered by the parent, the
company said in a statement. ING U.S.'s proceeds from the
offering are intended to be about $600 million.
ING U.S. had $461 billion in total assets under management
and assets under administration as of Dec. 31. It reported net
income of $473 million last year.
The IPO is scheduled to be priced on May 1 and shares will
begin trading on May 2, according to a market source.
REBRANDING TO VOYA FINANCIAL
When it first filed to go public in November, the company
said it intended to rebrand itself after listing and that it
expected "substantial costs" in connection with the rebranding.
It announced last week that it expects to rebrand as Voya
Financial following the offering.
However, the company does not expect to formally shift the
majority of its advertising and marketing to the new brand name
"until late 2014 at the earliest", Tuesday's filing said.
It also expects the rebranding to take about 24 months and
cost $40 million to $50 million, excluding incremental
The company has received approval to list its common stock
on the New York Stock Exchange under the symbol "VOYA".
Morgan Stanley is the "lead-left" underwriter for the
offering, with Goldman Sachs & Co and Citigroup among the lead
bookrunners in a 24 bank syndicate.
ING Groep shares, which have lost close to a fourth of their
value in the last three months, closed up 2 percent at 6.01
euros in Amsterdam earlier on Tuesday.