Further information from Willis Group Holdings Ltd.’s SEC filing for the sale of 20 million shares in an initial public offering confirms a target price of between $10 and $12 per share. This values the world’s third largest insurance broker at between $1.44 and $1.728 billion based on its 144 million outstanding shares.
The private buyout led by New York investment firm Kohlberg Kravits Roberts in 1998 valued Willis at around $1.2 billion. The IPO will dilute KKR’s 74.3 percent stake down to around 64 percent, but the firm doesn’t plan to sell any of its holdings at present.
Similarly, none of the insurance companies (see previous article for details), each of whom hold approximately 4 percent of Willis’ shares, have announced plans to sell any of their shares.
The underwriting group, led by Salomon Smith Barney, has an option to purchase an additional 3 million shares if the offering is oversubscribed.