Genworth/GEMI Goes Public, but at Lower Price

Genworth Financial, the parent company of G.E. Mortgage Insurance, Raleigh, N.C., went public Tuesday, but at a price several dollars short of what it hoped for.In trading midday Tuesday, Genworth Financial stood at $19.28. Underwriters, led by Morgan Stanley Dean Witter, forecast an offering price of $21 to $23 a share. According to rankings compiled by National Mortgage News, GEMI has been losing market share for years. In the first quarter, it ranked sixth out of seven mortgage insurance firms in terms of new policies written. However, it ranks fourth in terms of policies-in-force and continues to post strong profits. Genworth represents a spinoff of GE's life and mortgage insurance units. GE will initially retain a 30% stake in Genworth, but then hopes to divest itself of the entire unit. At 145 million shares, the initial public offering will raise $2.83 billion. To date, it is the largest IPO of the year.