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Genworth MI Canada Starts Trading

Genworth-FinancialToday is Genworth MI Canada’s first day of trading on the TSX. The firm’s shares were priced at $19 and are currently trading at $18.45. (TSX Quote)

The company is Canada’s second-biggest mortgage default insurer and a spin-off of US-based Genworth Financial.

Genworth Financial Chairman and CEO, Michael D. Fraizer, had this to say : “We’ll receive a meaningful level of capital through the transaction and continue to benefit from the earnings associated with our majority ownership position in Genworth MI Canada.”

Genworth MI Canada will receive about $97 million of the roughly $753 million IPO proceeds. The company will use the money to pay off its outstanding debt and enhance its capital position.

Genworth’s IPO underwriters have an option to buy 6.7 million more shares by August 6. If that happens, 44% of the company will be in public hands.

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Last modified: April 26, 2017

Robert McLister is one of Canada’s best-known mortgage experts. A mortgage columnist for The Globe and Mail, interest rate analyst and editor of MortgageLogic.news, Rob has been covering Canada's mortgage market since 2007.

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