P&A Providers & Administrators
MenuMENU
SearchSEARCH

AIG Said to Seek Up to $14.9B in Asia Unit IPO

October 6, 2010
2 min to read


American International Group Inc., the bailed-out insurer, is seeking as much as HK$115.3 billion ($14.9 billion) in an initial public offering of its Asia unit in Hong Kong, two people with knowledge of the matter said.


The company plans to sell as many as 5.9 billion shares of AIA Group Ltd. at HK$18.38 to HK$19.68 each, said the people, who declined to be identified because the discussions are private. The offering represents a stake of about 49 percent of the company, the people said, which would value Hong Kong-based AIA at as much as $30.6 billion.

Ad Loading...


AIG is taking advantage of a gain in Hong Kong stocks to attempt what may become the city’s biggest-ever IPO, moving the insurer closer to repaying its $182.3 billion government bailout. The offering values AIA at a premium to European rivals, based on forecasts by the IPO arrangers.


“Many investors will have an interest in it because it’s a sizeable issue,” said Michiya Tomita, a Hong Kong-based fund manager at Mitsubishi UFJ Asset Management Co., which oversees $65 billion globally. “In terms of growth prospects, the valuation is a little expensive because the company isn’t focusing on China.”


AIG has an option to sell more shares in AIA, taking the potential size of the IPO to $20.5 billion, a term sheet for the transaction sent to fund managers showed. That would make it the largest ever in Hong Kong, overtaking the $16 billion raised by Beijing-based Industrial & Commercial Bank of China Ltd. in 2006, data compiled by Bloomberg show. At the bottom end of the range, the company will be valued at $28.5 billion.


AIA had an embedded value of $22 billion at the end of May, according to an AIG filing with the U.S. Securities & Exchange Commission. Embedded value estimates a life insurer’s net worth excluding new business, using actuarial and investment return assumptions.


Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley of New York and Frankfurt-based Deutsche Bank AG are among the banks arranging the sale. The stock is scheduled to start trading on Oct. 29.

Ad Loading...


AIA’s embedded value may grow to $25.8 billion next year, according to Sept. 24 reports by Goldman Sachs and Merrill Lynch & Co. The high end of the IPO price range values the company at 1.18 times its estimated 2011 embedded value.


China Life Insurance Co., the nation’s largest insurer, is valued at 2.1 times next year’s embedded value and European insurers trade at an average of 0.8 times, according to Merrill, which is also helping arrange the sale.

More Industry

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →