ING U.S. IPO could value company at over $6 billion

Tue Apr 16, 2013 6:29pm EDT
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By Aman Shah and Ashutosh Pandey

(Reuters) - Dutch financial services group ING Groep NV's ING.AS unit ING U.S. plans to price shares in its IPO at between $21 and $24 each, valuing the company at up to $6.16 billion in what could be the second-largest public offering this year.

The IPO could raise as much as $1.54 billion. Pfizer Inc's (PFE.N: Quote) animal health unit Zoetis Inc (ZTS.N: Quote) raised $2.2 billion in its February IPO.

"The price is somewhat consistent with what the management has said before. Given the current environment, this might be a price that may be achievable," Morningstar analyst Vincent Lui said.

ING Group's ownership in ING U.S. will reduce to 75 percent after the IPO.

ING Groep is splitting its banking and insurance operations as part of a restructuring deal with the European Commission, turning into a smaller Europe-focused bank.

The group received a 10 billion euro ($12.71 billion) capital infusion from the Dutch Government in 2008 and has been selling assets to repay the bailout. It sold its U.S. online banking business ING Direct for nearly $9 billion to Capital One Financial Corp (COF.N: Quote) in 2011.

ING U.S., which provides insurance, retirement and investment services, expects the IPO to sell 64.2 million shares of common stock, the company said in a regulatory filing on Tuesday. (

"The company had a big loss in 2008 and is a type of company that potentially exposes investors to big risks," Jay Ritter, a University of Florida IPO expert, told Reuters.   Continued...

The logo of ING is pictured at the headquarters in Amsterdam July 16, 2012. REUTERS/Robin van Lonkhuijsen/United Photos