("Principal Financial Announces $1B+ Stock Sale," published at
6:22 a.m. EDT, misidentified the company in one reference. A
corrected story appears below.)
DOW JONES NEWSWIRES
Principal Financial Group Inc. (PFG) announced plans to sell
42.3 million shares of stock, looking to take advantage of a
two-month surge to raise at least $1 billion in capital.
The planned sale by the life insurer and asset manager is the
latest in a spate in recent weeks as companies use the rebound from
March's multiyear lows to raise capital. Increasing investor demand
for corporate stock and debt offerings has become a prime way for
companies to get new funds as credit markets remain
constrained.
Chances are the amount of stock ultimately offered will be
raised by Principal, as investor demand of late has led many
companies to boost the ultimate size of offerings.
Not including the 15% over-allotment of the offer's proposed
size, Principal would boost shares outstanding by 16%.
Shares closed Friday at $23.36 and were inactive premarket. The
stock has more than quadrupled from March's all-time low of $5.41;
the insurer went public in 2002.
The life-insurance sector has been roiled by troubles in
investment portfolios and annuities, both heavily exposed to the
downbeat financial sector. Beyond raising capital, Principal is
among those expected to get some help from the Troubled Asset
Relief Program. The Treasury Department earlier this year decided
to include life insurers among the financial companies eligible for
such aid.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com