(Reuters) – Shares in Corebridge Financial Inc. opened up 2% in pre-market trading in their New York Stock Exchange debut on Thursday, valuing the company at $13.2 billion, dampening hopes for a revival in U.S. stock markets as concerns over market reduced investor confidence.
The lukewarm reception to the biggest U.S. IPO so far this year comes against a backdrop of global market turmoil that has shaved billions off company valuations.
Russia’s invasion of Ukraine and US inflation hovering at a 40-year high have dampened investor sentiment and dried up the 2022 IPO market.
Greek yogurt maker Chobani, which was seeking a $10 billion valuation according to sources, scrapped its IPO plans this month, citing market conditions.
The pipeline of companies looking to go public remains healthy and includes several major tech startups like Reddit, Instacart and Intel̵7;s Mobileye. But companies have been forced to wait out this period of rampant inflation and aggressive rate hikes that have hit Wall Street this year.
“Profitability and stable business models are likely to remain king in investors’ minds in the near term,” said Avery Spear, senior data analyst at Renaissance Capital, adding that Corebridge’s target valuation was more modest than expected due to challenging market conditions.
The $1.68 billion raised in the IPO will go to Corebridge’s parent, insurer American International Group Inc, and the new company will not raise capital, according to regulatory filings. Read the full story
The listing marks the culmination of a year-long effort by AIG, which first announced the decision to separate its life insurance and pension businesses from its property/casualty business in 2020.
The shares opened at $20.50 each, below their offering price of $21 each.
The IPO was underwritten by more than three dozen investment banks, led by JP Morgan, Citigroup, Morgan Stanley, Goldman Sachs, Bank of America and Piper Sandler.