NEW YORK, Dec. 13 (UPI) -- Shares of financial services giant Prudential Insurance Inc. rose by almost seven percent on heavy volume in their market debut on Thursday, as investors were eager to purchase shares in the nation's second-largest insurer.
Prudential offered 110 million shares on the New York Stock Exchange, making it the largest initial public offering since the Sept. 11 terrorist attacks. The Newark, N.J., -based financial services company raised approximately $3.03 billion, in the largest IPO ever in its industry.
Shares were priced at the mid-range of $27.50 per share between $25 and $30 per share with the stock selling at $29.46 in late midday trading Thursday. By the close, Prudential shares had gained $1.85, or 6.73 percent, to $29.35, on heavy volume of 49.1 million shares traded on the NYSE.
The launch, sponsored by lead underwriter Goldman Sachs, included a separate deal offering $600 million in convertible preferred bonds.
The company said it expects the IPO to close on Dec. 18, at which point the company's restructuring process will be complete and the Prudential Insurance Company of America will be renamed Prudential Financial Inc. (PRU). The company states this structural change will enable it to consider mergers and acquisitions and will provide further funds for investment.
Prudential's IPO marks the latest in a series of offerings in the sector, including earlier conversions by insurers MetLife and John Hancock both of which have seen share prices rise over 100 percent since their listing. It was one of 10 deals launched this week, and analysts predict it will provide a much-needed boost to the IPO market and Wall Street banks.
