Despite posting a loss of more than $150 million in the last quarter, The Phoenix Cos. Inc. raised $854 million through the sale of 48.8 million shares with its initial public offering (IPO) on June 19, 2001.
Phoenix's IPO price was $17.50 per share, above the target range of $14.50 to $17. Phoenix began trading on the New York Stock Exchange (stock symbol PNX) on June 20, 2001.
The IPO is the final step in the demutualization of Phoenix Home Mutual Life Insurance Co., and its investment arm, Phoenix Investment Partners Ltd., through which the companies convert from policyholder-owned to publicly traded.
The $854 million raised through the sale, which exceeded company estimates by almost $50 million dollars, will be used to compensate policyholders in the form of cash and policy credits, and to cover the insurer's demutualization expenses.
In addition to the shares sold at the IPO, the company plans to distribute an estimated 56.2 million shares to approximately 500,000 eligible policyholders as part of the demutualization plan.
Prudential Insurance Co. and Principal Financial Group also plan on demutualizing through IPOs later this year. Other insurers that recently demutualized include MetLife, John Hancock Financial Services, and Canadian insurer Sun Life Financial Services. Shares of these companies have more than doubled since their IPOs last year.
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