Bailed-out US insurance giant AIG said Thursday it had chosen Hong Kong as the venue for a planned listing of its Asian subsidiary AIA.
But American International Group (AIG), which said in May that it planned to float American International Assurance (AIA), did not give a time frame for the listing, which is subject to the approval of the Hong Kong Stock Exchange.
“The timing of any offering will be dependent on market conditions and regulatory approvals. We will only list when we are ready,” said Mark Wilson, AIA’s chief executive officer and president, in a statement.
Wilson said Hong Kong — home of AIA’s head office in the Asia Pacific — was a natural choice for the initial public offering.
“Hong Kong is a very important market for us and it is a gateway to China, one of our critical markets for our future success,” Wilson said.
“Hong Kong has a highly liquid stock market and world-class infrastructure for financial services companies. The rationale for a Hong Kong listing is compelling.”
Bob Benmosche, AIG’s chief executive officer, said the listing was in the best interests of policyholders, distribution partners, AIG shareholders and US taxpayers.
The listing represents an attempt to distance the Asian insurance arm from its parent group, whose reputation has been hit by a huge Washington bailout at the end of last year after it was battered at the onset of the credit crunch.
Dow Jones Newswires previously reported that up to a third of AIA would be floated on the Hong Kong Stock Exchange to raise between 5 billion to 10 billion US dollars in the first quarter of next year.
With AFP, Hong Kong, Dec 3, 2009
