Old Mutual gets low price for its US share sale

 
Tim Wallace
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OLD MUTUAL is set to raise $308m (£190m) from the initial sale of shares in its US asset management business, more than $20m less than it had hoped to raise in the offering.

The shares were priced at $14, below the $15 to $17 range it had hoped to achieve for the 22m shares on offer.

The price values the overall US business, which is being listed on the New York Stock Exchange, at around $1.8bn.

If the initial public offering (IPO) had achieved the desired price, it would have raised between $330m and $374m.

Confidence has returned to the IPO market vigorously this year, as investors welcomed the return of strong economic growth in the US and UK.

As a result, share prices and flotation valuations jumped, and a torrent of deals succeeded in getting to market.

But Old Mutual Asset Management is listing just as investors’ appetites appear to be sated, and they are cutting back on their new investments.

The UK parent’s shares dipped 0.53 per cent on the day.

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