ING U.S., Inc., the retirement, investment and insurance business subsidiary of ING Group (ING) Tuesday said it has filed a preliminary prospectus with the U.S. Securities and Exchange Commission relating to its proposed Initial Public Offering.
The proposed IPO consists of a primary component offered by ING U.S. and a secondary component offered by ING Group, both at a currently estimated price range of $21.00 to $24.00 per share.
The offering size is expected to range between $1.4 billion to $1.5 billion, including $0.6 billion in primary proceeds for ING U.S. and approximately $0.8 billion to $0.9 billion in proceeds from the secondary offering for ING Group.
The underwriters have been granted option to purchase an additional number of ING U.S. shares from ING Group at the initial public offering price, corresponding to a maximum of 15 percent of the total shares offered in the proposed IPO.
The proposed IPO will reduce ING's ownership stake in ING U.S. To 75 percent. Fully exercising this overallotment option would further reduce stake to around 71 percent.
Net proceeds from the secondary offering will be available for the reduction of Group core debt. The $1.5 billion contingent funding facility currently in place between ING U.S. and ING Bank N.V. will also be canceled upon completion of this offering.
The offering is expected to generate a negative impact of approximately 1.6 billion euros on the shareholders' equity of ING Group.
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