US insurer AIG’s Asian unit said it would initially offer 5.86bn shares at between HK$18.38 (£1.48) and HK$19.68 each, or up to $15bn.
But it could still issue up to 8.08bn shares if the listing proves popular, with investors exercising a so-called “greenshoe” option which would bring the total to $20.6bn and leave AIG with a stake of 32.9 per cent. Meanwhile, it also revealed the sale would result in $308m in fees for the 11 banks involved, making it a bumper year for Asian investment banks. Shares in AIA will be offered this week with trading expected to begin on 29 October. AIG, is looking to repay US taxpayers after a government bailout in 2008.
It was forced to look again at listing AIA in Hong Kong after the collapse in June of Prudential’s $35.5bn takeover bid for the company.
Earlier this year, Agricultural Bank of China raised a total of $22.1bn from an IPO, exceeding the previous record set by the Industrial and Commercial Bank of China, which raised $21.9bn in 2006.
“This IPO serves as a great catalyst for the next and exciting phase in the AIA’s history,” Mark Tucker, group executive chairman and chief executive officer, said.