IPO of ING US to yield less than expected

The issue price for the initial public offering (IPO) of the American retirement, investment and insurance business of ING was set at 19.50 U.S. dollars per share, below the previously announced estimated price range, the Dutch bank and insurer ING announced on Wednesday. The initial plan, announced on April 16, was a price between 21 and 24 dollars per share to collect a total amount of 1.4 to 1.5 billion dollars. ING is now targeting a revenue of 1.3 billion dollars. Shares are expected to begin trading on Thursday on the New York Stock Exchange under the ticker symbol Voya. The idea is that eventually the entire American part will continue independently under the name Voya. After the close of the sale on May 7, the IPO will reduce the ownership of ING Group in ING U.S. to 75 percent. The banks that accompany the IPO, Morgan Stanley, Goldman Sachs and Citigroup, have the option of buying 9.8 million shares at the initial public offering price up to 30 days after the IPO. When they use this option, the interest of ING in its U.S. branch will further decline to 71 percent. Last year, ING had announced it would divest its insurance and investment management businesses as part of a restructuring program agreed with the European Commission following state aid it received in 2008 and 2009. The remaining interest by ING will eventually be sold, as agreed with the European Commission. ING intends to use the proceeds from the IPO to reduce its debt.