Prudential will go public: You, too, can get a piece of the rock
Wednesday, December 12th 2001, 12:00 am
News On 6
NEWARK, N.J. (AP) _ For the first time in 86 years, the general public _ and not just policyholders _ will be able to get a piece of the rock.
Prudential Insurance Co. of America, long the nation's largest life insurer, will hold an initial public offering of stock on Thursday.
Prudential will become a publicly owned company, instead of a mutual company owned by policyholders.
Prudential policyholders in August overwhelmingly approved the move, which the company said would allow it to compete with an insurance industry increasingly filled with consolidating companies.
The stock price is expected to be between $25 and $30 a share, and the offering could raise about $3 billion. The stock begins trading Thursday on the New York Stock Exchange under the symbol PRU.
Prudential plans to distribute 454.6 million shares to its 11 million policyholders and sell 110 million shares to the public.
Next week, its name will change to Prudential Financial Inc., signifying its role as one of the world's largest financial services institutions, with more than $606 billion in assets under management as of June 30.