Enact Holdings (ACT) has filed to raise $497 million in an IPO of its common stock, according to an S-1/A registration statement.
The firm provides mortgage insurance to prospective residential mortgage borrowers in the United States.
ACT has grown revenue during the COVID-19 pandemic, but I’m concerned that consumer home buying activity will revert to the mean, reducing revenue growth and profitability, so I'll pass on the IPO.
Company and Technology
Raleigh, North Carolina,-based Enact was founded as a division within parent company Genworth Financial (GNW) in 1981 to provide mortgage insurance to enable borrowers to qualify for lower interest rate loans.
Management is headed by president and CEO Rohit Gupta, who has been within the Genworth group since 2003 and was previously Genworth Mortgage Insurance Company's Chief Commercial Officer.
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