Another day, another sign of renewal for initial public offerings. Primerica co-CEOs John Addison and Rick Williams capped the day off by ringing the closing bell after the Citigroup life insurance spinoff’s shares soared in their April Fool’s Day debut on the New York Stock Exchange.
Appetite for the company’s stock remained strong throughout the day, with shares jumping more than 30 percent above the initial offering price in afternoon trade as investors bet that the life insurer will reap rewards as the economy continues to mend.
Primerica priced at $15 a day earlier, above the $12 to $14 range that was expected. Citigroup sold 21.3 million shares in the offering and raised a total of $320 million in the deal. The bank will retain up to a 43 percent stake in the insurer, with plans to reduce it over time.
Earlier in the day, Japanese life insurer Dai-ichi Life also fared well in its trading debut, leaping as much as 14 percent above its initial public offering price on the Tokyo Stock Exchange. The $11 billion IPO marks the world’s largest since Visa’s $19.7 billion offering two years ago.
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“The initial public offering of the insurance sales and advisory network is part of Mr Pandit’s plan to refocus Citigroup’s on banking and to reduce its overall balance sheet.”