AIA float to top estimates

Marion Dakers
AIG’S Asian life insurance offshoot AIA is set to hit the top end of estimates when it lists at the end of the month, with several reports claiming yesterday the float will raise $17bn to $20bn (£10.8bn to £12.7bn).

Strong investor demand prompted AIG to close the books on one of the world’s biggest ever initial public offerings on Tuesday, several days earlier than expected. AIG could be left with just a 33 per cent stake in AIA to satisfy demand for shares when the Asian branch lists in Hong Kong on 29 October.

Troubled US insurance group AIG is selling AIA on the Hong Kong stock market in an attempt to raise money to pay back its American bail-out fund.

AIG tried unsuccessfully to sell the business earlier this year to Prudential for $35.5bn. The British insurer had asked AIG to cut the price to $30.4bn, but was turned down.