In a move that inches AIG (AIG) closer to its dream of once again joining the private sector, the mainly taxpayer-funded insurance giant is getting closer to slapping a price sticker on its AIA Asian life insurance business. The Wall Street Journal reports that an initial public offering of AIA could value the company at as much as $30.5 billion, but could also value the firm at $28.5 billion, or somewhere in between.
AIG wants to put about 50 percent of AIA up for sale in an effort to raise money and pay back the approximately $90 billion it owes the government. The company could get between $14.25 and $15.25 billion from the IPO, which is a decent haul but less than the $35.5 billion it would have gotten if it had managed to sell all of AIA to Prudential earlier this year.
The Journal also says that the Kuwait Investment Authority is taking rougly a $1 billion stake in AIA.
Update: Bloomberg reports that AIG “may offer shares of its main Asia unit at a price of HK$18.38 ($2.37) to HK$19.68, according to two people with knowledge of the plan.” According to Bloomberg, the number of shares to be made available in the IPO hasn’t yet been determined.