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UPDATE 1-Citi to join top underwriters in AIA IPO -sources
Fri, 30th Jul 2010 12:04
By Denny Thomas and Kennix Chim
HONG KONG, July 30 (Reuters) - American International Group Inc is set to name Citigroup as the fourth joint global coordinator for the IPO of its Asian life insurance business, underscoring the seriousness with which AIG is pursuing the float.
The IPO of American International Assurance (AIA) could raise about $15 billion. The issue, expected to list in Hong Kong by the fourth quarter, is not only crucial for league table credits but some $500 million in fees is also at stake.
The success of the IPO is equally critical for AIG's Chief Executive Benmosche, who is stamping his authority on the bailed-out U.S. insurer following a boardroom battle that led to the resignation of chairman Harvey Golub.
Sources with direct knowledge of the matter told Reuters that Citigroup, an adviser to AIG, is likely to join Deutsche Bank , Goldman Sachs and Morgan Stanley as joint global coordinators (JGCs) -- an unusually long list of JGCs for an IPO.
The sources declined to be identified as the names of the top underwriters is not yet public.
Agricultural Bank of China Ltd's $20.8 billion IPO just had three JGCs.
Junior book runners for the float are yet to be decided. Citigroup and AIA declined to comment.
Last week, Goldman Sachs was pushed up to the role of joint global coordinator to the issue. The addition of Citigroup as a JGC shows AIG and the US government are not taking any chances after the dramatic collapse of Prudential's plc deal to buy AIA.
Cornerstone investors are expected to play a major in the success of the AIA IPO, as was evident in AgBank's IPO.
Bankers said AIG and its bankers were already getting feelers from influential wealth funds and consortium of other investors for taking pre-IPO and cornerstone stakes in AIA.
(Editing by Ken Wills and Anshuman
Daga)
((denny.thomas@reuters.com; +852 28436 358; Reuters Messaging: denny.thomas.reuters.com@reuters.net)) Keywords: AIG/CITIGROUP
(If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)
COPYRIGHT
Copyright Thomson Reuters 2010. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
HONG KONG, July 30 (Reuters) - American International Group Inc is set to name Citigroup as the fourth joint global coordinator for the IPO of its Asian life insurance business, underscoring the seriousness with which AIG is pursuing the float.
The IPO of American International Assurance (AIA) could raise about $15 billion. The issue, expected to list in Hong Kong by the fourth quarter, is not only crucial for league table credits but some $500 million in fees is also at stake.
The success of the IPO is equally critical for AIG's Chief Executive Benmosche, who is stamping his authority on the bailed-out U.S. insurer following a boardroom battle that led to the resignation of chairman Harvey Golub.
Sources with direct knowledge of the matter told Reuters that Citigroup, an adviser to AIG, is likely to join Deutsche Bank , Goldman Sachs and Morgan Stanley as joint global coordinators (JGCs) -- an unusually long list of JGCs for an IPO.
The sources declined to be identified as the names of the top underwriters is not yet public.
Agricultural Bank of China Ltd's $20.8 billion IPO just had three JGCs.
Junior book runners for the float are yet to be decided. Citigroup and AIA declined to comment.
Last week, Goldman Sachs was pushed up to the role of joint global coordinator to the issue. The addition of Citigroup as a JGC shows AIG and the US government are not taking any chances after the dramatic collapse of Prudential's plc deal to buy AIA.
Cornerstone investors are expected to play a major in the success of the AIA IPO, as was evident in AgBank's IPO.
Bankers said AIG and its bankers were already getting feelers from influential wealth funds and consortium of other investors for taking pre-IPO and cornerstone stakes in AIA.
(Editing by Ken Wills and Anshuman
((denny.thomas@reuters.com; +852 28436 358; Reuters Messaging: denny.thomas.reuters.com@reuters.net)) Keywords: AIG/CITIGROUP
(If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)
COPYRIGHT
Copyright Thomson Reuters 2010. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
