Genworth to sell 34% of Australian unit in IPO

SYDNEY: US financial services giant Genworth Financial Inc will sell 34 per cent of Australian subsidiary Genworth Mortgage Insurance Australia Ltd in the country's second-biggest public float of the year, a source involved in the sale said.

Richmond, Virginia-based Genworth Financial will sell 200 million shares in the Australian company plus another 20 million options to meet additional demand, the source, who was not permitted to speak publicly about the sale, said on Wednesday.

The sell-down is within the 30-40 per cent range the prospectus said the parent company expected to sell as it attempts to raise up to A$754 million ($705.86 million) in a public float.

Officials at Genworth Mortgage Insurance Australia could not be reached for comment.

The public offer is the biggest of the year in Australia so far, behind only Pacific Equity Partners' attempt to raise A$1 billion by floating 49 per cent of services company Spotless Group the same day, May 23.

Genworth, via bankers Goldman Sachs, completed a retail bookbuild with strong support and expects to complete an institutional bookbuild on Thursday before determining pricing, the source said.