Shares in Old Mutual PLC’s U.S. money management subsidiary, OM Asset Management, began trading Thursday on the New York Stock Exchange at a price of $14 per share.
Last month, Old Mutual announced plans to sell 22 million of OM Asset Management’s ordinary shares at a price range between $15 and $17. The revised price of $14 per share gives the company proceeds of $308 million, said a spokesman for Old Mutual. The shares on offer equate to 18.3% of the total, giving OMAM a market capitalization of about $1.7 billion.
OMAM has $221 billion in assets under management.
A source familiar with the IPO said changes in market conditions and investor views on fair valuations since the September pricing would have affected the final price. The source also cited other financial IPOs in the U.S. this year that have priced slightly below estimate.
OMAM’s stock, which carries the ticker symbol OMAM, closed at $13.95 a share on Thursday.