Hands untied

22 October 2010 By John Foley Follow @johnsfoley

The insurer priced at the top of the range, giving parent AIG the chance to pay back bailout debts, while retaining a 33 pct stake offering possible upside. AIG, AIA’s new boss and lead manager Goldman Sachs all had something to prove. Their relief will be palpable.

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AIA Group priced its Hong Kong initial public offering at HK$19.68 per share ($2.53), giving the Asian life insurer an implied market capitalisation of $30.5 billion. The price was at the top of the indicated range.

American International Group, AIA's parent, will see its ownership reduced to 33 percent, assuming exercise of the overallotment option. AIG must retain half of its remaining stake for a year, and the rest for 18 months.

Goldman Sachs led the IPO process, along with global coordinators Citi, Morgan Stanley and Deutsche Bank.

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