Prudential Board OKs Plan for IPO

The board of directors for Prudential Insurance Co. unanimously approved a plan for an initial public offering of the insurance giant’s stock by October, according to a memo distributed to workers. The plan to distribute shares to its approximately 12 million policyholders would make Prudential the most widely held U.S. stock, according to a memo from CEO Art Ryan that was distributed Friday after the vote was taken. The firm is expected to make an announcement today. It would follow the lead of insurers John Hancock and Metropolitan Life, which went public earlier this year. Prudential is owned by its policyholders, but ownership is not in the form of stock, so shares cannot be sold. If Prudential goes public, policyholders could cash in on their stakes. State regulators and policyholders would have to approve the IPO.