Home Product listing AIG Corebridge Unit Raises $1.68 Billion in Biggest IPO of the Year

AIG Corebridge Unit Raises $1.68 Billion in Biggest IPO of the Year

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NEW YORK, Sept 14 (Reuters) – AIG Inc’s life insurance and pensions division, Corebridge Financial Inc (CRBG.N), raised $1.68 billion on Wednesday in its largest initial public offering. (IPO) of the year, braving market volatility and ending a seven-month lull in large listings.

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

The IPO values ​​Corebridge at $13.6 billion.

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All proceeds from the IPO will go to AIG and the new company is not raising new capital, according to an earlier filing with the U.S. Securities and Exchange Commission.

Selling shares of Corebridge could help bring the IPO market out of its hibernation. Russia’s invasion of Ukraine and runaway inflation causing interest rate hikes have fueled equity market volatility since February, making it difficult for companies to push listings higher.

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

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

THE BIGGEST IPO OF 2022

AIG first announced that it would spin off its life and pensions unit and list it as a new public company in 2020, allowing the insurance giant to focus on its P&C 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 such separation.

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

Houston-based subsidiary of AIG provides retirement solutions and insurance products in the United States

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

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

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Reporting by Echo Wang in New York; Additional reporting by David French; Editing by Anirban Sen and David Gregorio

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