Wellington Underwriting Plc, a Lloyd's of London insurer, said it expects to hold a 17 percent stake in Aspen Insurance Holdings Ltd. after the company has its initial public offering on the New York Stock Exchange.

Aspen estimates the price of its stock will be in the range of $20 to $22 per share, Wellington said in a Regulatory News Service statement.

Aspen will raise a net $178.5 million from the IPO if a so-called over-allotment option isn't exercised, Wellington said. Aspen is offering 9.5 million shares and a further 1.4 million shares to cover over-allotments, Wellington said.

Aspen, a Bermuda-based reinsurer set up in June, 2002 by Wellington, said last month that it planned to file for an initial public offering with the US Securities and Exchange Commission. Wellington currently holds a 20 percent stake in Aspen.

Aspen is also backed by $850 million in private equity from investors including Blackstone Group LP and Credit Suisse First Boston.

Aspen will use the proceeds to boost capital at its units and repay some short-term debt, the Bermuda-based insurer said in a separate e-mailed statement. Credit Suisse First Boston and Goldman Sachs Group Inc. will act as joint book running managers for the offering, Aspen said. - Bloomberg News