This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Shares in Insurer NN Rise on Amsterdam Debut

Stocks in this article: ING JPM MS DB

NEW YORK (The Deal) -- ING Groep  (ING - Get Report) raised 1.5 billion ($2.05 billion) from the initial public offering of insurance subsidiary NN Group, whose shares started trading Tuesday on the Euronext Amsterdam exchange.

Amsterdam-based ING sold a total of 77 million shares in the IPO at 20 each, near the upper end of the 18.50 to 22 price range. About 94.8% of the shares were sold to Dutch and international institutional investors, and the rest to Dutch retail investors. Another 11.6 million shares could be sold if a greenshoe is used.

After 450 million-worth of subordinated notes are converted into NN shares and the greenshoe, ING's total proceeds will come to about 2 billion. ING said it would use the funding to cut debt.

Excluding the greenshoe, ING will be left with 71.4% of NN Group as it nears the finish line of a European Commission-mandated restructuring. Last week ING sold its remaining 10% stake in Brazilian insurer SulAmerica through a block trade in Sao Paolo, to raise about 170 million.

Based on 350 million shares outstanding at settlement of the IPO, the offer price gives NN Group a starting capitalization of 7 billion. Shares began trading today under the symbol 'NN' and were up 1.07, or 5.4%, at 21.07 on their debut.

ING plans to further trim its stake in NN Group to below 50% by December 2015, and the rest by the end of 2016, in line with promises made to the European Commission. It's keeping its options open for how to dispose of the rest, reiterating Tuesday that it retains "full flexibility" on that front, subject to certain lock-up arrangements with the underwriters.

JPMorgan Chase (JPM - Get Report), Morgan Stanley (MS - Get Report)ING Bank and Deutsche Bank (DB - Get Report) are joint global coordinators for the IPO.

As announced in April, ING secured 1.275 billion in pre-IPO investments from RRJ Capital, of Hong Kong, Singapore's state-owned Temasek Holdings and Temasek's SeaTown Holdings Pte Ltd.

The trio will buy a combined 150 million of the IPO shares and another 1.125 billion of notes with a 4% coupon that are automatically convertible into NN Group shares in three tranches, starting with a block when the IPO is settled on July 7.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs