AIA seeks $20bn in AIG share sale

19 October 2010

AIA Group is looking to raise up to $20 billion from an initial public offering (IPO) for its Asian life insurance unit AIG.

The insurance division is to offer up to 5.86 billion shares priced between HK$18.38 and HK$19.68.

According to the Financial Times, a number of Chinese firms are looking to invest in the business including the likes of China Investment Corporation, China Life, Taikang and Ping An.

The former is reportedly looking to secure a stake in the firm worth $250 million

Mark Tucker, group executive chairman and chief executive officer, said: “This IPO serves as a great catalyst for the next and exciting phase in the AIA’s history.”

AIA is undertaking the sale as part of its strategy of repayment to the US government, which it sourced capital from to ensure its survival during the global financial crisis.

If the listing proves to be popular among investors, then a 'greenshoe' option can be exercised which will allow up to 8.08 bill shares to be exercised.

Earlier in the year the Agricultural Bank of China succeeded in raising $22.1 billion from an IPO.

By Jim Ottewill

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