CHICAGO -- St. Paul Cos. sold the first public offering of stock in John Nuveen & Co., its wholly owned subsidiary, on Tuesday in a deal headed by Goldman, Sachs & Co.
The initial public offering comprises 8 million shares of Nuveen Class A common stock at a price of $18 per share, according to a press release from Nuveen. Jeff Kratz, a Nuveen spokesman, said the stock began trading yesterday morning at the New York Stock Exchange under the symbol "JNC."
St. Paul Cos. will use the stock offering's net proceeds "for general corporate purposes, which may include contributions of capital to its insurance subsidiaries and repurchases of its common shares," according to the press release. Mr. Kratz said the parent company continues to retain a controlling interest in Nuveen.
The two firms announced in March that an offering of stock was being contemplated so St. Paul Cos. could realize a portion of its investment in Nuveen, which has been its wholly owned subsidiary since 1974.
St. Paul Cos., based in St. Paul, Minn., is a worldwide property-liability insurance organization. Chicago-based Nuveen specializes in the underwriting, trading, and marketing of municipal bonds and tax-free investments.