New IPO alert: ICICI Prudential AMC set to float issue on December 12; all you need to know

ICICI Prudential Asset Management Company (AMC), a subsidiary of ICICI Bank, is gearing up to launch its initial public offering (IPO) on December 12.

According to market sources, the issue size is expected to be around ₹10,000 crore.

The company's maiden public offering will conclude on December 16, and bidding for anchor investors will take place on December 11, according to the red herring prospectus.

The issue is entirely an offer for sale (OFS) of 4.89 crore equity shares by the promoter—UK-based Prudential Corporation Holdings—with no fresh issue component.

Since the issue is entirely an OFS, the company will not receive any capital from the offer, and the proceeds will go to the selling shareholder.

At present, ICICI Bank holds a 51% stake in the asset management company, while the remaining 49% is with its joint venture partner Prudential Corporation Holdings.

On June 28, ICICI Bank stated that its board approved an additional 2% increase in stake in ICICI Prudential AMC.

This purchase will primarily be towards maintaining the bank's majority shareholding in the event of the grant of stock-based compensation by the company, the private sector bank stated.

In February, the bank announced its intention to retain a majority holding in ICICI Prudential AMC even though its joint venture partner plans listing and partial divestment of its stake in the fund house.

This would be the fifth asset management firm to list on the exchanges, following HDFC AMC, UTI AMC, Aditya Birla Sun Life AMC, Shriram AMC, and Nippon Life India Asset Management.

Moreover, this would also be the fifth entity to get listed from the ICICI Group after ICICI Bank, ICICI Prudential Life Insurance Company, ICICI Lombard General Insurance Company, and ICICI Securities.

About the company

ICICI Prudential AMC is one of India's premiere fund houses. It was founded in 1993 as ICICI Asset Management Company. The joint venture between ICICI Bank, a well-known, trusted name in financial services in India, and Prudential Plc, one of the UK’s largest players in the financial services sector, established ICICI Prudential Asset Management Company in the year 1998.