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Home / Insurance / AIG unit Corebridge raises $1.68 billion in largest IPO of the year

AIG unit Corebridge raises $1.68 billion in largest IPO of the year



(Reuters) – American International Group Inc.’s life insurance and pensions division Corebridge Financial Inc. raised $1.68 billion on Wednesday in the biggest initial public offering so far this year, despite market volatility, ending a seven-month hiatus in major IPOs.

AIG said it sold 80 million Corebridge shares at $21 a share, which was at the lower end of its stated target range of $21 to $24 a share.

The IPO values ​​Corebridge at $13.6 billion.

All proceeds from the IPO will go to AIG and the new company will not raise new capital, according to a previous filing with the US Securities and Exchange Commission.

Corebridge’s share sale could help shake the IPO market out of its doldrums. Russia̵

7;s invasion of Ukraine and rampant inflation triggering interest rate hikes have fueled stock market volatility since February, making it difficult for companies to proceed with IPOs.

U.S. IPOs are on track for their worst year in more than two decades, according to Dealogic, which tracks listing data going back to 1995. So far, companies have raised about $18 billion this year, compared with more than $231 billion over the same period. last year, according to the data provider.

Other companies, including social media platform Reddit and software company ServiceTitan, have been forced to delay their IPO plans this year in light of the volatility.

Raising $1.7 billion, the Corebridge offering also marks the largest U.S. IPO this year, topping private equity firm TPG Inc.’s $1.1 billion listing in January.

AIG first announced that it would separate its life and pensions unit and list it as a new public company in 2020, allowing the insurance giant to focus on its property/casualty business.

Such a move reflects a broader trend among insurers to focus on a single product offering, given their different shareholder return profiles; a trend that AIG had successfully fought for years, including a campaign by activist investors in the mid-2010s advocating for such a separation.

After selling a 10% stake to private equity firm Blackstone Inc. for $2.2 billion last year, AIG filed for the Corebridge offer in March. It had initially planned to complete the listing by the end of June, before postponing it due to market turmoil.

AIG will control nearly 78% of the company’s shares after the listing, with Corebridge trading on the New York Stock Exchange under the symbol “CRBG”.

JPMorgan Chase & Co., Morgan Stanley and Piper Sandler Co. are the leading underwriters for the IPO. Bank of America, Citigroup and Goldman Sachs are also among the leading underwriters on the IPO.


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