Gediminas Jasionis

American International Group Inc. (NYSE: AIG) will raise money using their Asian unit

by Gediminas Jasionis May 18, 2009
logo-aia-malaysia-aig-malaysia.gifOn Sunday American International Group Inc. (NYSE: AIG) announced plans to spin off their Asian life insurance unit. The American International Assurance Co. should be announcing their initial public offering in some Asian market when the conditions are favorable. The separation of American International Assurance Company (AIA) as a different entity is based on AIG's plan to meet its loan obligations to the US government.

Analysts believe the IPO will be welcomed in Asian markets and can significantly alter AIG's finances. This strong belief is based on AIA's successful historical performance in Asia as well as perspective future outlook for the company.

It was not specified which exact exchange the company will be traded in, nor how much they expect to raise from IPO. AIA itself is calculated being worth somewhat $20 to $25 billion according to some analysts.

We might not see IPO being actually made in the coming few weeks as currently the general prognoses for stock markets is slight decline or consolidation for some short period at least. The company is likely to wait until there is a more optimistic outlook, even if they will get regulatory approval sooner.

AIG's stock price had added 6.4% amid the Monday's trading session, influenced both by the news announcement and general rise of the market.


Press release on AIG and AIA separation

Comments 1

1. Guest
September 06, 2007, 12:26PM

Quotes He runs ALAB

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