Enact Holdings, a private mortgage insurance company being spun out of Genworth Financial, announced terms for its IPO on Monday. The company previously postponed its $497 million IPO in May 2021.
The Raleigh, NC-based company now plans to raise $260 million by offering 13.3 million shares (100% secondary) at a price range of $19 to $20, down from its previous terms of 22.6 million shares at a range of $20 to $24. In a concurrent private placement, new investor Bayview Asset Management has agreed to purchase 14.7 million secondary shares if the IPO prices at $22 or less, and 4 million shares if it prices between $22 and $24. At the midpoint of the proposed range, Enact Holdings would command a fully diluted market value of $3.2 billion and an enterprise value of $3.5 billion.
Enact states that it is a leading private mortgage insurance (PMI) company in the US, operating in all 50 states and the District of Columbia. The company's market share was approximately 17% in 2020, and it generated nearly $100 billion in new insurance written during the year (+60% y/y). In both 2019 and 2020, Enact provided new insurance coverage to approximately 1,800 customers, including 19 of the top 20 mortgage lenders as measured by total 2019 and 2020 mortgage originations.
Enact Holdings was founded in 1981 and booked $1.1 billion in sales for the 12 months ended June 30, 2021. It plans to list on the Nasdaq under the symbol ACT. Goldman Sachs, J.P. Morgan, BofA Securities, and Credit Suisse are the joint bookrunners on the deal. It is expected to price during the week of September 13, 2021.
