Genworth Financial announced Thursday that its Australian mortgage insurance business will raise about $535 million in an initial public offering.

The Richmond, Va.-based company, which owns an active mortgage insurer in the U.S., will price 220 million shares at $2.50 per ordinary share. The company has designated 20 million shares as overallocation shares, which could be reacquired.

The offering is expected to close on May 20.

Genworth CEO Tom McInerney said last month that net proceeds from the sale will be used to reduce risks associated with Australian economy. He has said previously that proceeds could also be used to cut debt.

The announcement comes after several delays by Genworth to spin off its Australian insurance business. Initial plans for an Australian IPO were sidetracked in April 2012 by elevated losses in the division, which led to the resignation of then-CEO Michael Fraizer.

The company delayed plans for an IPO again the following year, citing regulatory uncertainty. 

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