Prudential Raising Close to $1 Billion (PRU, AIG)

Prudential Financial, Inc. (NYSE: PRU) has raised close to $1 billion.  If no over-allotment shares are exercised, this figure is closer to $970 million.  The insurer sold 18.35 million shares at $54.50 per share in a public secondary offering.  Proceeds from the offering will be to help the company pay for the acquisitions of AIG Star Life Insurance Co., Ltd and AIG Edison Life Insurance Company from American International Group, Inc. (NYSE: AIG).

Citi, BofA Merrill Lynch, UBS, and Barclays Capital are the joint book-runners, and the co-managers are listed as Deutsche Bank Securities, HSBC, and Wells Fargo Securities.  The underwriters will have a 30-day over-allotment option to purchase up to an additional 2,752,293 shares of common stock from the company.

Prudential shares closed at $55.02 on Thursday and the market cap before the effect of this offering was listed as roughly $25.7 billion.  The 52-week trading range is $46.20 to $66.80 and the average daily volume is almost 4.4 million shares.

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JON C. OGG