AIA IPO eyes up to $14.9bn fundraising

first_img Tags: NULL Show Comments ▼ whatsapp KCS-content American International Group (AIG) plans to raise up to $14.9bn (£9.4bn) through an IPO of its Asian life insurance unit AIA Group, according to documents relating to the matter yesterday.The Hong Kong-based company plans to raise between $13.9bn and $14.9bn by selling 5.86bn shares at HK$18.38 to HK$19.68 each, the document said. Including an overallotment option, the IPO could raise up to $17.1bn.The document also revealed a list of cornerstone investors in the offering, including a $1bn commitment from the Kuwait Investment Authority and firms controlled by Hong Kong tycoon Cheng Yu-tung.Citigroup, Deutsche Bank, Goldman Sachs and Morgan Stanley are joint global coordinators for the IPO. Though the total amount has yet to be determined, the standard Hong Kong IPO fee would have the banks involved splitting roughly $500m in fees. In addition to a boon to the banks involved, it would also allow AIG to pay back the US government for its rescue in late 2008.In total, six cornerstone investors had agreed to commit $1.9bn to the IPO, said the document which was provided by a person directly involved in the deal, who was not authorised to be identified because the information is not public.AIG plans to sell 48.6 per cent of. Malaysian conglomerate Guoco Group which has agreed to invest $370m, while Lorita Investment and Kumpulan Wang Persaraan signed up to invest $200m each, the document said. Cheng’s New World and Chow Tai Fook committed $50m each.AIA’s overall value after listing would be on par with what British insurer Prudential last offered for AIA in its failed takeover bid earlier this year. AIA’s IPO was set to start today, with shares expected to start trading on 29 October. The issue was likely to be among the world’s largest ever and follows the record-breaking July deal from the Agricultural Bank of China. AIA would be the second largest IPO in the world this year.“Considering that some of the Chinese insurers are trading more than two times embedded value, I think AIA can get overall value north of $30bn,” said Sally Yim, vice president at Moody’s Investors Service. Share whatsapp AIA IPO eyes up to $14.9bn fundraising Monday 4 October 2010 8:29 pm More From Our Partners I blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orglast_img