ING U.S. Kicks Off 2nd Biggest IPO of '13 in the Red

By Matt Egan Industries FOXBusiness


After pricing its initial public offering below its expected range, insurance and retirement-saving plan provider ING U.S. (VOYA) continued its disappointing debut on Thursday by opening down more than 1%.

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The first day of trading marks a lackluster start for the second-largest U.S. IPO of 2013, which raised about $1.27 billion through the offering.

ING U.S., which is still majority owned by Dutch banking giant ING Groep (ING), priced its IPO at $19.50 a share late Wednesday, which was below the expected range of $21 to $24.

The weaker-than-expected pricing prompted ING U.S. to boost the size of the deal by 1.6% to 65.2 million shares, The Wall Street Journal reported.

ING U.S. opened at $19.25 on Thursday morning on the New York Stock Exchange, representing a 1.3% decline from its IPO price. In more recent trading ING U.S. reversed course and was up 1.10% to $19.72.

New York-based ING U.S., which plans on switching its name to Voya Financial next year, has about 13 million customers and earned $473 million in 2012.

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Despite the disappointing debut, ING U.S. still ranks as the second-largest U.S. IPO this year, topped only by the $2.57 billion raised by Zoetis (ZTS), the animal-health business spun off by Pfizer (PFE).

ING U.S. is also the largest IPO by an insurance company since Genworth Financial (GNW) raised $2.86 billion in January 2004, according to Dealogic stats cited by the Journal.

The ING U.S. IPO was led by Wall Street giants Morgan Stanley (MS), Goldman Sachs (GS) and Citigroup (C).

Amsterdam-based ING Group required a $12.71 billion bailout from the Dutch government during the financial crisis and has been unloading assets since to repay the loan, highlighted by the $9 billion sale of ING Direct USA to Capital One Financial (COF) in 2011.

U.S.-listed shares of ING dipped 0.12% to $8.11 Thursday morning.