American International Group (AIG) Inc. is moving closer to launching what could be the world's third biggest initial public offering (IPO).
AIG, New York, says AIG Group Ltd., Hong Kong, announced details of the AIA IPO Sunday.
AIG says in an AIA IPO report filed today with the U.S. Securities and Exchange Commission that the IPO could raise the equivalent of more than $14 billion to $16 billion in U.S. currency.
AIG hopes to sell a 49% stake in AIA, or about 5.9 billion shares, at a price of about $2.37 to about $2.54 per share.
Institutional demand for the shares has been so strong that AIG may close the offer 2 days earlier than originally planned and use options to sell more shares, increasing total proceeds to more than $20 billion, according to published reports.
The conversions here are based on an exchange rate of 1 Hong Kong dollar to 13 cents in U.S. currency.
AIG earlier made an unsuccessful effort to sell all of AIA to Prudential P.L.C., London (NYSE:PUK), for more than
