By Eiko Wang
NEW YORK (Reuters) – AIG’s Corbridge Financial and retirement insurance raised $1.68 billion on Wednesday in its largest initial public offering so far this year, countering market volatility and ending a seven-month slump in major listings.
AIG (NYSE:) said it sold 80 million Corebridge shares at $21 per share, which was at the lower end of its target range of $21 to $24 per share.
The IPO estimated Corebridge at $13.6 billion.
All proceeds from the IPO will go to AIG and the new company will not raise new capital, according to an earlier report with the US Securities and Exchange Commission.
Corebridge’s stake sale could help shake the IPO market out of its slumber. Russia’s invasion of Ukraine and rampant inflation that has driven up interest rates have sent stock market volatility since February, making it difficult for companies to move forward with listings.
US IPOs are on track for their worst year in more than two decades, according to Dealogic, which tracks listing data going back to 1995. So far, companies have raised about $18 billion this year, compared to more than $231 billion. during the same period. period last year, according to the data provider.
Other companies, including social media platform Reddit and software company ServiceTitan, have had to delay plans for an initial public offering this year in light of the volatility.
With an increase of $1.7 billion, Corebridge’s offering also marks the largest initial public offering in the United States this year, surpassing the listing of private equity firm TPG Inc. valued at $1.1 billion in January.
Biggest IPO of 2022
AIG first announced that it will separate its life and retirement unit and list it as a new public company in 2020, allowing the insurance giant to focus on its property and loss business.
This step reflects a broader trend among insurance companies to focus on offering a single product, given its different return profiles to shareholders; A trend that AIG has been fighting against for years, including a campaign by activist investors in the mid-2010s to call for such a separation.
After liquidating a 10% stake in private equity firm Blackstone (NYSE:) Inc for $2.2 billion last year, AIG applied for Corebridge’s bid in March. It had initially planned to complete the listing by the end of June, before it was postponed due to market turmoil.
The Houston-based subsidiary of AIG provides retirement solutions and insurance products in the United States
AIG will control approximately 78% of the company’s shares after the listing, with Corebridge trading on the New York Stock Exchange under the symbol “CRBG”.
JPMorgan Chase & Co. (NYSE:) , Morgan Stanley (NYSE:: Piper Sandler Co. are the two major underwriters for the initial public offering. Bank of America (NYSE:)), City Group (NYSE:) and Goldman Sachs (NYSE:) are among the major underwriters in the IPO.