Whatever Berkshire buys, other investors tend to follow. Same is true for whatever he sells.
Well, the IPO may be imminent: The Symetra IPO might become the first US IPO this year, but both Berkshire and White Mountain have pledged not to sell their shares for this year. According to this Business.com write-up.
Berkshire and White Mountain each owns 26% of Symetra shares prior to the IPO. They acquired the shares when they lead a consortium that took Symetra private in 2004 from Safeco.
Details of the IPS are as follows, according the Businessweek article:1. The insurer plans to raise as much as $434.7 million in an initial public offering of 31 million shares, today’s filing said. The target figure was scaled back from a planned sale of as much as $575 million that had been listed in a Dec. 29 registration statement.
2. Symetra estimated it would have a so-called tangible book value, a measure of shareholder equity that excludes assets that can’t be sold in liquidation, of $12.42 a share after the offering and assuming an IPO price of $13.
3. At that share price, Symetra would be valued at 1.05 times tangible book value, a premium to the median of 0.97 for 24 life insurers traded in the U.S.Soon Berkshire Hathaway will have a traded Symetra stock in its portfolio.
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About the author:
My name is Ben C. and I am 2nd year MBA candidate at the Anderson School of Business at the University of California- Los Angeles. I have a BS in Economics from the Wharton School of Business at the University of Pennsylvania. Before coming to Anderson I worked as a generalist equity research analyst for Right Wall Capital, a long-short equity hedge fund located in New York City. Prior to working at Right Wall I worked as an analyst at Blue Ram Capital, another long-short equity hedge fund located in Rye Brook, NY. This past summer, I worked for West Coast Asset Management as a research analyst. West Coast, which was co-founded by Kinko’s founder Paul Orfalea, is run by well-known value investors Lance Helfert and Atticus Lowe.