Shares of Primerica Inc., a unit of Citigroup Inc. that sells life insurance and other financial products, rose in their IPO debut as the financial services company took another step in its effort to raise cash and streamline its business.
Citigroup said late Wednesday that the initial public offering of Primerica Inc. raised $320.4 million after 21.4 million shares priced at $15 each. It expected to sell 18 million shares for $12 to $14 apiece. Citigroup will pocket all the proceeds, after expenses.
Primerica shares are up $4.44, or nearly 30 percent, to $19.44 in Thursday morning trading on the New York Stock Exchange and traded as high as $19.51. The shares are trading under the ticker symbol "PRI."
Divesting Primerica, which is based in Duluth, Ga. and has about 100,000 licensed representatives selling insurance, mutual funds, annuities and other products, is part of Citi's effort to simplify its operations and raise cash.
The New York bank, one of the hardest hit during the credit crisis and recession, still owns nearly half of Primerica. Citi plans to sell the rest of its stake after the IPO.
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