Skip to main content

Liberty Mutual Files $1.2B IPO

Liberty Mutual has filed paperwork with the Securities Exchange Commission to take its agency public.
  • Author:
  • Publish date:

NEW YORK (

TheStreet

) --

Liberty Mutual

has filed paperwork with the

Securities Exchange Commission

to take its agency public. The

S-1 filing

says the insurer plans to sell over 64 million shares at $18 and $20 per share.

"This will be the biggest IPO of the year," Scott Sweet, senior managing partner at IPO Boutique told

The Street

. "This is a good move for Liberty Mutual."

Liberty Mutual's agency is made up of independent agents and brokers that distribute the property and casualty insurer's products. Shareholders will own about 20% of the company under the IPO and Liberty Mutual would retain an 80% stake in the company.

Liberty Mutual Agency would file on the Nasdaq under the symbol "LMAC." The IPO could bring in $1.17 billion for the insurer that would be used to pay down debt, including $130 million from its acquisition of 2007 purchase of insurer Ohio Casualty.

This IPO will essentially differentiate Liberty Mutual from other public and private insurers such as Allstate

TheStreet Recommends

(ALL) - Get Allstate Corporation Report

and Travelers

(TRV) - Get Travelers Companies, Inc. Report

, said Sweet.

"If it goes off -- and based on the interest I believe it will -- this will be a success," Sweet said. "Liberty Mutual is also likely to use the money to make acretive acquisitions, especially of hard hit companies."

--Written by Maria Woehr in New York.

To contact the writer of this article, click here:

Maria Woehr

.

To follow the writer on Twitter, go to

http://twitter.com/newsgirlmw

.

To submit a news tip, send an email to:

tips@thestreet.com

.