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American International (AIG) Launches Corebridge IPO, Eyes $1.9B
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American International Group, Inc. (AIG - Free Report) announced the launch of the initial public offering (IPO) of its SAFG Retirement Services, Inc. on Sep 6, 2022. AIG is offering 80 million common shares of this majority-owned subsidiary, now named Corebridge Financial, Inc., in the IPO. It has a total common stock of 645 million.
The new company is likely to be listed under the symbol CRBG on the New York Stock Exchange. AIG expects the IPO to fetch $21-$24 per share, raising around $1.9 billion in total. At the top end of the range, Corebridge is expected to have a market valuation of nearly $15.5 billion. Following the listing, AIG is expected to hold around 78% of the shares, while Blackstone Inc. (BX - Free Report) will hold 9.9%.
AIG filed for the IPO in March 2022 to simplify its business. The company initially announced its decision to separate the business in 2020. The listing was delayed due to stock market volatility. Brewing recession fears and ongoing geopolitical turmoil are keeping stock market listing actions dull this year.
At second-quarter end, Corebridge had over $350 billion in assets under management. Net proceeds from the transaction will likely go to AIG. With this move, its Life and Retirement business is expected to become a standalone company. Earlier, AIG announced a group of directors for the new entity, with Peter Zaffino taking the spot of the chairman of the company.
The move is expected to enhance capital allocation and operating leverage for the company’s core operations. It can help AIG to focus on de-levering and investing in business growth. Cash proceeds received from Blackstone through the equity sale last year helped AIG in boosting liquidity.
Price Performance
American International’s shares have declined 4.3% in the past year compared with a 16.6% fall of the industry.
Headquartered in Reno, NV, Employers Holdings provides workers' compensation insurance to businesses operating in hazardous industries. The Zacks Consensus Estimate for EIG’s 2022 earnings has increased 5.9% in the past 60 days.
Based in Los Angeles, CA, Ares Capital specializes in rescue financing of middle-market companies. The Zacks Consensus Estimate for ARCC’s 2022 earnings indicates 16.3% year-over-year growth.
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American International (AIG) Launches Corebridge IPO, Eyes $1.9B
American International Group, Inc. (AIG - Free Report) announced the launch of the initial public offering (IPO) of its SAFG Retirement Services, Inc. on Sep 6, 2022. AIG is offering 80 million common shares of this majority-owned subsidiary, now named Corebridge Financial, Inc., in the IPO. It has a total common stock of 645 million.
The new company is likely to be listed under the symbol CRBG on the New York Stock Exchange. AIG expects the IPO to fetch $21-$24 per share, raising around $1.9 billion in total. At the top end of the range, Corebridge is expected to have a market valuation of nearly $15.5 billion. Following the listing, AIG is expected to hold around 78% of the shares, while Blackstone Inc. (BX - Free Report) will hold 9.9%.
AIG filed for the IPO in March 2022 to simplify its business. The company initially announced its decision to separate the business in 2020. The listing was delayed due to stock market volatility. Brewing recession fears and ongoing geopolitical turmoil are keeping stock market listing actions dull this year.
At second-quarter end, Corebridge had over $350 billion in assets under management. Net proceeds from the transaction will likely go to AIG. With this move, its Life and Retirement business is expected to become a standalone company. Earlier, AIG announced a group of directors for the new entity, with Peter Zaffino taking the spot of the chairman of the company.
The move is expected to enhance capital allocation and operating leverage for the company’s core operations. It can help AIG to focus on de-levering and investing in business growth. Cash proceeds received from Blackstone through the equity sale last year helped AIG in boosting liquidity.
Price Performance
American International’s shares have declined 4.3% in the past year compared with a 16.6% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
American International currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader finance space are Employers Holdings, Inc. (EIG - Free Report) and Ares Capital Corporation (ARCC - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Reno, NV, Employers Holdings provides workers' compensation insurance to businesses operating in hazardous industries. The Zacks Consensus Estimate for EIG’s 2022 earnings has increased 5.9% in the past 60 days.
Based in Los Angeles, CA, Ares Capital specializes in rescue financing of middle-market companies. The Zacks Consensus Estimate for ARCC’s 2022 earnings indicates 16.3% year-over-year growth.