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June 30, 2014 3:23 pm
The FTSE 100 company disclosed on Monday it had filed registration documents with US securities regulators ahead of a proposed New York listing later this year. No new equity will be raised. Instead, all the proceeds of the listing will go to Old Mutual.
The group has yet to provide a target valuation and has not said how much of the business it plans to float, other than to say it will be a minority stake. The listing is still likely to be several months hence.
The documents did disclose an improved financial performance at the division, a collection of various “boutique” asset managers built up during an acquisition spree by Old Mutual before the financial crisis. The business, which has disposed of various underperforming boutiques recently, attracted $2.4bn worth of net inflows during April and May, helping to lift assets under management to $210.1bn. This compares with outflows of $2.1bn during the first three months of the year.
Old Mutual also disclosed the US asset management business was planning to raise $175m in debt ahead of the stock market launch. The group has previously indicated that the business planned to expand outside the US. Investors have been expecting the stock market launch – the latest strategic move under chief executive Julian Roberts – for several months.
Old Mutual, a life insurance, savings and asset management group, has already sold or wound down several businesses as part of a global retrenchment strategy, including selling its Nordic division for £2.1bn. More recently Old Mutual has begun to increase its expansion efforts in Sub-Saharan Africa.
About a dozen asset management or investment management companies have listed in the US since 2000, according to Dealogic. The largest in the period was ING USA at $1.5bn in May 2013. That excludes private equity and alternative asset managers, such as Ares Management, which went public in May.
With the US equity market strong and tech and growth stocks having recouped losses sustained in pullback this spring, the IPO market has firmed in recent weeks. Bankers are predicting a busy summer. There are about 100 deals currently in the pipeline, Dealogic data show.
Additional reporting by Nicole Bullock in New York
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