AIA Group Ltd said Sunday it could raise up to 20 billion US dollars in a global public offering, putting it on track to be the world’s second biggest IPO this year.
Announcing details of the sale at a press conference in Hong Kong, the Asian unit of US insurer AIG said it said it will offer 5.86 billion shares priced at between 18.38-19.68 Hong Kong dollars each, or up to 15 billion US dollars. It said it could issue up to 8.08 billion shares if it exercised a greenshoe option, which would bring the total raised to around 20 billion US dollars.
AIG, which is looking to repay US taxpayers after a government bailout in 2008, won approval last month for the sale of its Asian unit and is planning to float about half of AIA.
“This IPO serves as a great catalyst for the next and exciting phase in the AIA’s history,” Mark Tucker, group executive chairman and chief executive officer, said via a live video feed from the United States.
Earlier this year, Agricultural Bank of China raised a total of 22.1 billion dollars from an IPO, exceeding the previous record set by the Industrial and Commercial Bank of China, which raised 21.9 billion dollars in 2006. Shares will be offered from Monday October 18 to October 21, with trading expected to begin on October 29.
AIA said that as of May 31, it had total assets of 95.7 billion US dollars and an operating profit of 1.1 million US dollars. The company believes its consolidated operating profit for the fiscal year ending November 30 will not be less than 2 billion US dollars.
Hong Kong, Oct 17, 2010 (AFP)
