US-based Genworth Financial says it has ''no current plans'' to further sell down its stake in float debutante Genworth Mortgage Insurance Australia after the expiry of an escrow period.
In a prospectus lodged on Wednesday, chairman of the local entity Richard Grellman said after the initial public offering Genworth Financial would own at least 60 per cent of the Australian listed company.
''Genworth Financial has stated it has no current plans to further reduce its ownership,'' he said.
''The issuer will use the proceeds of the offer to repay intra-group funding arrangements … Genworth Australia will not retain any net proceeds of the offer.''
The escrow period for the parent entity expires after Genworth Australia lodges its results for the year to December 31.
Genworth plans to raise $429 million to $754 million by selling shares at $2.20 to $2.90 each.
The final amount raised will depend on an offer structure and price determined at a book-build on May 15. The offer for retail investors opens on May 2.
The offer was priced at 0.65 times to 0.8 times book value and represented 30 per cent to 40 per cent of the company.
The stock is expected to start trading on a conditional and deferred settlement basis on May 20.
If the offer prices at the top end of the range, it will mark the biggest local financial services float since Promina Group in 2003, Dealogic data showed.
The float comes after a previous attempt to list was shelved, amid adverse market conditions.
Locally, Genworth is a provider of lenders' mortgage insurance, which protects the lender when a borrower fails to make home loan repayments.
To ease concerns among potential investors about risks in the local housing market, the prospectus said Genworth Australia had been profitable for 46 of the past 48 years, through a ''wide range'' of economic, housing and business cycles.
