American International Group Inc. (AIG) says the AIA Group Ltd. initial public offering (IPO) should raise the equivalent of about $18 billion in gross proceeds.
AIA, Hong Kong, is one of the leading insurers in the Eastern Hemisphere. It has operations in Australia, Brunei, China, Hong Kong, India, Indonesia, Macau, Malaysia, New Zealand, Singapore, South Korea, Thailand and Vietnam.
AIG is selling a 58% stake in AIA in an effort to pay back part of what it owes the Federal Reserve Bank of New York and the U.S. Treasury Department for aid provided during the recent credit crisis.
The AIA IPO will involve a base offering of a total of about 7 billion ordinary shares, the company says.
The underwriters have an option to buy another billion shares if investors buy all of the first 7 billion shares.