Enact Holdings, a private mortgage insurance company being spun out of Genworth Financial, raised $253 million by offering 13.3 million shares (100% secondary) at $19, the low end of the range of $19 to $20. Bayview Asset Management agreed to purchase 14.7 million shares (100% secondary) in a concurrent private placement.
Enact states that it is a leading private mortgage insurance (PMI) company in the US, operating in all 50 states and the District of Columbia. The company's market share was approximately 17% in 2020, and it generated nearly $100 billion in new insurance written during the year (+60% y/y). In both 2019 and 2020, Enact provided new insurance coverage to approximately 1,800 customers, including 19 of the top 20 mortgage lenders as measured by total 2019 and 2020 mortgage originations.
Enact Holdings plans to list on the Nasdaq under the symbol ACT. Goldman Sachs, J.P. Morgan, BofA Securities, and Credit Suisse acted as joint bookrunners on the deal.
