Jul
16
AIA IPO Plans Moving Forward
By Sergio | Published July 16, 2010
According to recent reports citing an unidentified source, American International Group Inc. (AIG) plans to go ahead with an Initial Public Offering (IPO) of its AIA Group life-insurance unit, later on this year.
After the collapse of the deal by which Prudential would have acquired AIA from AIG, there were expressions of interest for AIA by Generali, whilst at the same time AIG was considering the possibility of reviving its original plans for the AIA IPO.
During the latest AIG board meeting earlier this week, directors discussed the steps necessary to prepare for a listing of AIA in the Hong Kong stock market. At present, the US government holds a majority stake in AIG.
Depending upon the valuation of AIA, a sale of about half of the company could raise between US$15 billion (EUR 11.8 billion) and US$20 billion (EUR 15.8 billion). The proceeds of the AIA IPO would go towards repaying part of the many billions of US dollars owed to the US government.
Taking into account the time that would be required to prepare the AIA listing prospectus for a planned launch by year-end, it should be completed by the end of September.
Insurance Companies mentioned:
The American International Group is a leading international insurance organization with operations in more than 130 countries and jurisdictions globally.
AIA is a Hong Kong-based life insurance company doing business across Asia that has been in business since 1919. They service over 20 million policies through 23,000 employees and 300,000 agents throughout markets in Asia, including; Vietnam, Thailand, Taiwan, South Korea, Singapore, Philippines, New Zealand, Malaysia, Macau, Indonesia, India, Hong Kong, Mainland China, Brunei and Australia.
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