IPOs: Anthem Raises $2.1 Billion; Principal Sells $1.8 Billion in Stock. (Companies).Anthem Inc. launched what could be the most successful initial public offering the health insurance industry has seen yet, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. one equity analyst. "They literally doubled the size of the offering. They priced it on the upper end of the range. It traded over 10% higher on the first day...it's pretty amazing," said Todd Richter, an equity analyst with Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. Securities. Anthem completed its $2.1 billion initial public offering and its conversion to a public company. At the end of October, Anthem completed the sale of 55.2 million shares of common stock and $230 million of equity security units. With the closing of the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. , Anthem Insurance Cos. converted from a mutual insurance company to a stock company and became a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Anthem Inc. Anthem sold 48 million shares of common stock Oct. 30 at $36 each. Goldman Sachs Group Inc., the lead underwriter Lead underwriter The head of a syndicate of financial firms that are sponsoring an initial public offering of securities or a secondary offering of securities. Could also apply to bond issues. of the IPO, had increased the offering by 8 million shares on Oct. 29, after increasing it by 11.4 million shares on Oct. 26. Anthem had originally said it expected to offer 28.6 million shares to be priced between $33 and $37 each, according to an Oct. 1 filing with the Securities and Exchange Commission. There also was a 15% over-allotment option for the underwriters to sell additional shares, which pushed the proceeds even higher. About a week earlier, Principal Financial Group Inc. closed its initial public offering of 100 million shares of common stock at a price of $18.50 a share, having raised about $1.8 billion. With the IPO's closing, Principal Mutual Holding Co. completed its conversion from a mutual insurance holding company to a stock company. On Oct. 23, Principal's common stock began trading on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . At the close of trading Oct. 25, it had total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. of about 7.9 billion, it said. Principal Financial has about 360 million shares outstanding. Health-Care Giants Anthem Inc. is among the top public health insurers, based on market capitalization as of Oct. 31. UnitedHealth Group Inc. $20.52 billion Cigna Corp. $10.69 billion WellPoint Health Networks Inc. $7.09 billion Anthem Inc. $4.36 billion Aetna Inc. $3.97 billion |
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