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The SPAC Surge and PBCs

Wednesday, April 21, 2021 In Mintz’s recent article “Public Benefit Corporations are Going Public,” we predicted that, as Special Purpose Acquisition Companies (“SPACs”) reemerge as an alternative to initial public offerings (“IPOs”), Public Benefit Corporations (“PBCs”) would start going public through the SPAC process. Not surprisingly, two PBCs have recently done just that, and it seems certain that more PBCs will follow. It is important to note, however, that regulators like the U.S. Securities and Exchange Commission (the “SEC”) are increasingly focused on SPAC oversight, which may slow the frequency of SPAC transactions as regulators issue new guidance and enforcement measures.

Genworth Files Red Herring for Mortgage Insurance Unit IPO

What You Need to Know Genworth Financial is moving toward selling a stake in its mortgage insurance business through an IPO. Genworth Mortgage Holdings works with about 1,800 mortgage lenders, including 19 of the 20 biggest mortgage loan originators. The prospectus lists the COVID-19 pandemic as well as its parent s LTCI business as risk factors. Genworth Financial Inc. has started filing the paperwork to sell a stake in its mortgage insurance business to public investors through an initial public offering. A “red herring,” or preliminary prospectus, for the IPO shows that Genworth Mortgage Holdings Inc. would be based in Raleigh, North Carolina, and could have stock that would trade on the Nasdaq Global Select Market.

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