Apollo-Backed Athene Could Raise $1 Billion for Shareholders in IPO
November 28 2016 - 9:10AM
Dow Jones News
Athene Holding Ltd. submitted an amended filing for its coming
initial public offering that could value the fixed-annuities
provider at about $8 billion.
The firm, backed by a private-equity group Apollo Global
Management LLC, said the company itself wouldn't receive any
proceeds from the public sale of stock. Instead, the insurer's IPO
stands to benefit selling shareholders, including Apollo and its
executives, according to the filing.
The company set an estimated range of $38 to $42 a share for the
offering of nearly 23.8 million class A shares, plus roughly 3.6
million shares in a so-called overallotment clause that gives
underwriters the option to buy into the company at the IPO price.
At the high-end of the range, the selling shareholders stand to
raise as much as $1.15 billion in the IPO and the company would be
valued at about $8 billion.
Athene's stock is slated to trade on the New York Stock Exchange
under the symbol "ATH."
Apollo has for years indicated IPO plans for Athene, whose
growth has been a boon to the New York asset manager. The details
outlined in a securities filing Monday set the stage for Athene to
debut in public markets at the end of a tepid year for U.S.-listed
IPOs.
Stocks of insurance firms Athene competes with, such as
Ameriprise Financial Inc., have rallied following Donald Trump's
unexpected victory over Hillary Clinton earlier this month.
Investors are betting that rising interest rates could benefit
insurers, and that Mr. Trump could roll back regulations on the
industry.
Bermuda-based Athene has become a dominant player in fixed
annuities—savings contracts that promise to pay buyers a set amount
of interest each year—providing them to hundreds of thousands of
retirees and other consumers.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
November 28, 2016 08:55 ET (13:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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