Old Mutual is set to raise upwards of $270m from the public offerings of its US-based asset management arm OMAM.
It has priced the public offering, expected to close on 19 December, at $14.25 a share.
It will offer 13 million shares at the price, which would raise $185.25m, while OMAM, which has $234.2bn assets under management, expects to repurchase a further 6 million ordinary shares from the group, also at $14.25.
In total this would raise $270.8m for Old Mutual.
The underwriters have a 30-day option to purchase an additional 1.95m ordinary shares at the public offering price, which could add to the money raised.
OMAM will not sell any shares or receive proceeds from the sale.
Old Mutual expects to use the proceeds for general corporate purposes.
Old Mutual is currently undergoing a “managed separation”, which will see OMAM, as well as Old Mutual Wealth, Old Mutual Emerging Markets and Nedbank separated and two businesses listed on the London and Johannesburg stock exchanges.
It is expected to complete in 2018.