American International Group (AIG) is moving ahead with its plan to coordinate an initial public offering of its Hong Kong-based life insurance unit, according to the Wall Street Journal. The IPO, once launched, would be a significant boost to a market that has seen very few offerings in the past year and a half.
AIG is currently looking for a minimum of two investment banks through which to coordinate its IPO of its American International Assurance (AIA) unit. One of these banks will almost certainly be Morgan Stanley, according to sources, with Citigroup and Goldman Sachs likely candidates for the second slot.
AIA, which has $60 billion in total assets as of November 2008, has a customer base of 20 million throughout Hong Kong, China, Thailand, and Singapore. Attempts to sell stakes of up to 49 percent of AIA last year failed.
Investment banks have until May 29 to make a bid to coordinate the IPO, with selection interviews to take place on June 9 and 10. Private equity firm Blackstone will be advising AIG on the AIA offering.