genworth-logo-300x186.jpgGenworth Financial, Inc. (NYSE: GNW, GNW message board) has found a way to ease their financial position. Genworth, one of the largest mortgage firms in the U.S., recently announced that their Canadian branch, Genworth MI Canada Inc., will go public. On Thursday the company priced its initial public offer (IPO), and expects to generate up to $850 million.

The company will offer 44.7 million shares at a price of C$19 (around US$16.3) per share. After-tax proceeds are expected to be between 635 and 730 million US dollars. Both parent and subsidiary companies have split the share issuance. Genworth MI will issue only $5.1 million shares leaving everything else to the parent company.

Collected proceeds of approximately $97 million should be sufficient to eliminate all outstanding debts of the Canadian company. Although the parent company can expect to get up to $753 million of proceeds, however, the actual amount will hardly cover their losses over the past two quarters. The IPO proceeds aren't going to immediately lift Genworth from a tough situation, but the money should help a lot.

Even with the Canadian subsidiary going public, Genworth Financial will retain their influence in the company. The parent company will be left with 56% ownership interest in Genworth MI Canada Inc. The IPO is expected close on July 7 when Genworth Canada will begin trading on the Toronto Stock Exchange.