AIA warns on risks as it launches IPO

first_img whatsapp AIA warns on risks as it launches IPO KCS-content Show Comments ▼ Tuesday 5 October 2010 7:29 pm AIA Group, which aims to raise about $15bn (£9.4bn) through a Hong Kong listing, flagged a series of business risks including the collapsed bid from Prudential as it launched the share offering yesterday.AIA, the Asian life insurance business of American International Group, also said in the preliminary prospectus filed to the Hong Kong Stock exchange that it would not pay a dividend before 2011.AIG is planning to sell 48.6 per cent stake in AIA to raise up to $14.86bn, a document shows. The net proceeds will be used to repay financial aid AIG received from the US government.AIG revived AIA’s IPO after Prudential cut its takeover offer for AIA to $30.4bn from $35.5bn. In contrast, the IPO would value AIA at as much as $30.5bn.“The terminated Prudential transaction also adversely impacted and may continue to adversely impact agency recruitment and new business production by our agents,” AIA said in its prospectus. “We cannot assure you that our business and prospects will not be materially and adversely affected by the terminated Prudential transaction.”AIA, an Asia-focused insurer, is selling 5.86bn secondary shares at an indicative price range of HK$18.38 (£1.50) to HK$19.68 per share.Despite the red flags, there was a burst of demand for the shares yesterday, with demand equalling the number of shares on offer. The interest is likely to be because AIG has announced the on-again, off-again deal for so long that investors are already familiar with the company. center_img Read This Next’Kevin Can F**k Himself’: Here’s Why Only Allison and Patty Are SeenThe Wrap20 Stars Who’ve Posted Nude Selfies, From Lizzo to John Legend (Photos)The Wrap’Batwoman’: Wallis Day on Circe’s ‘Deranged’ Warpath and the Key to SavingThe Wrap’Godzilla vs Kong’ Reaches $100 Million in US After Grossing $250,000 inThe WrapJoin a Conversation on ‘Cancel Culture in Comedy’ with Maz Jobrani, SkyeThe WrapAnya Taylor-Joy, Ralph Fiennes Join Searchlight’s Dark Comedy ‘The Menu’The WrapAfter ‘Black Widow,’ Kevin Feige Leaves Open the Possibility of OtherThe Wrap’Pose’ Creator Steven Canals on Life After His Groundbreaking Show: ‘I’mThe Wrap’The Boys’ Star Aya Cash Took Inspiration From YouTube, TikTok and SteveThe Wrap whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople Today Share Tags: NULLlast_img

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