AIA shares jump 12% on first day of Hong Kong trading

29 October 2010

Shares in AIA surged by 12 per cent on their opening day of trading in Hong Kong following the company's successful initial public offering (IPO).

The AIG-run Asian life insurance group raised $17.8 billion from the IPO, the largest amount recorded in the history of the city.

Investors who put money into the IPO ahead of its listing received a lucrative paper profit from the share debut, reports the Financial Times.

Shares in AIA had been sold to sovereign funds, tycoons and retail investors at HK$19.68 in the IPO, with their value reaching HK$22.00 after trading commenced in Hong Kong this morning (October 29th 2010).

AIG sold off more than seven billion shares in AIA as part of the offering, which represented a 58 per cent stake in the company.

Last week, Mark Tucker, chief executive officer of AIA, said he was pleased shares were being sold at the "top end of the range", stating that it reflected a strong vote of confidence in the future of the firm.

By Asim Shah

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