AIG Launches IPO Process for Asia Crown Jewel.
HONG KONG (Reuters) - AIG is to speed up plans to list its Asian subsidiary through an IPO that could raise more than $4 billion, as the bailed-out U.S. insurer seeks to raise cash to pay back government loans.
The IPO would help AIG repay some of the $180 billion the U.S. government has plowed into what was once the world's biggest insurer, and allow the profitable Asia life insurance subsidiary, American International Assurance Co Ltd (AIA), to break from its ailing parent.
The at least $4 billion initial public offering, based on targets set by AIG executives, would make it the largest Hong Kong IPO since China Citic Bank Corp <0998.hk> raised $4.2 billion in April 2007, according to Thomson Reuters data.
After AIG failed to sell a large stake in AIA earlier this year, the insurer said it would continue to try and seek a buyer or an IPO. A statement on Monday was the first official sign from AIG that steps toward a listing are underway.
The IPO would help AIG repay some of the $180 billion the U.S. government has plowed into what was once the world's biggest insurer, and allow the profitable Asia life insurance subsidiary, American International Assurance Co Ltd (AIA), to break from its ailing parent.
The at least $4 billion initial public offering, based on targets set by AIG executives, would make it the largest Hong Kong IPO since China Citic Bank Corp <0998.hk> raised $4.2 billion in April 2007, according to Thomson Reuters data.
After AIG failed to sell a large stake in AIA earlier this year, the insurer said it would continue to try and seek a buyer or an IPO. A statement on Monday was the first official sign from AIG that steps toward a listing are underway.
Source; abcnews.go.com
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