AIG unit Corebridge raises $1.68 bln in year’s largest IPO

NEW YORK, Sept 14 (Reuters) – AIG Inc’s life insurance coverage and retirement division Corebridge Monetary Inc (CRBG.N) raised $1.68 billion on Wednesday within the greatest preliminary public providing (IPO) to this point this yr, braving market volatility and ending a seven-month lull in main listings.

AIG stated it bought 80 million Corebridge shares at $21 per share, which was on the decrease finish of their indicated goal vary of $21 to $24 per share.

The IPO values Corebridge at $13.6 billion.

All proceeds of the IPO will go to AIG and the brand new firm isn’t elevating new capital, in keeping with an earlier submitting with the U.S. Securities and Change Fee.

Corebridge’s share sale might assist shake the IPO market out of its hibernation. Russia’s invasion of Ukraine and rampant inflation triggering rises in rates of interest have been driving inventory market volatility since February, making it exhausting for corporations to press forward with listings.

IPOs in america are on monitor for his or her worst yr in over 20 years, in keeping with Dealogic, which tracks itemizing knowledge going again to 1995. To this point, corporations have raised about $18 billion this yr, in comparison with over $231 billion throughout the identical interval final yr, in keeping with the info supplier.

Different corporations, together with social media platform Reddit and software program agency ServiceTitan, have been pressured to delay their IPO plans this yr in mild of the volatility.

With a increase of $1.7 billion, the Corebridge providing additionally marks the most important U.S. IPO this yr, topping non-public fairness agency TPG Inc.’s (TPG.O) $1.1 billion itemizing in January.

BIGGEST IPO OF 2022

AIG first introduced it could separate its life and retirement unit and record it as a brand new public firm in 2020, thereby permitting the insurance coverage big to give attention to its property and casualty enterprise.

Such a transfer displays a wider development amongst insurers to give attention to a single product providing, given their completely different return profiles to shareholders; a development which AIG had efficiently fought off for years, together with a marketing campaign by activist traders within the mid-2010s advocating such a separation.

After divesting a ten% stake to non-public fairness agency Blackstone Inc (BX.N) for $2.2 billion final yr, AIG filed for the Corebridge providing in March. It had initially deliberate to finish the itemizing by the tip of June, earlier than suspending it resulting from market turbulence. learn extra

The Houston-based AIG subsidiary gives retirement options and insurance coverage merchandise within the U.S.

AIG will management nearly 78% of the corporate’s shares after the itemizing, with Corebridge buying and selling on the New York Inventory Change below the image “CRBG”.

JPMorgan Chase & Co., Morgan Stanley and Piper Sandler Co. are the lead underwriters for the IPO. Financial institution of America, Citigroup and Goldman Sachs are additionally among the many lead underwriters on the IPO.

Reporting by Echo Wang in New York; Further reporting by David French; Enhancing by Anirban Sen and David Gregorio

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