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AIG’s Corebridge Raises $1.68 Billion at Bottom of IPO Range

·2 min read

(Bloomberg) -- American International Group Inc.’s life and retirement unit raised $1.68 billion in an initial public offering, pricing its shares at the bottom of a marketed range.

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The IPO by Corebridge Financial Inc. is the biggest in the US this year and is being closely watched as a possible harbinger of a healthier market after the worst year for new listings since the depths of the financial crisis.

Corebridge sold 80 million shares Wednesday for $21 each after marketing them for $21 to $24, according to a statement.

At the IPO price, Houston-based Corebridge has a market value of about $13.6 billion based on the outstanding shares listed in its filings with the US Securities and Exchange Commission.

The only other IPO topping the billion-dollar mark in the US this year was private equity firm TPG Inc.’s $1.1 billion offering in January, just as market volatility and inflation fears all but froze new listings. Before Corebridge, 180 companies had raised less than $20 billion on U.S. exchanges this year, according to data compiled by Bloomberg. Last year, a record of almost $340 billion was raised in more than 1,000 listings, the data show.

IPO Proceeds

All proceeds of the Corebridge transaction will go to AIG and the new company isn’t raising new capital. The firm had more than $350 billion in assets under management and administration as of end of June.

One of the largest providers of retirement financial products, Corebridge reported $6.4 billion in profit on $15.7 billion in revenue in the six months ended in June. Its profit more than doubled from the same period last year, its filings show.

AIG will control almost 78% of Corebridge’s shares after the listing, with Blackstone Inc. holding about 10%, according to filings.

Simplifying Operations

The IPO, which before the market downturn had been planned for the second quarter, is the culmination of a long-standing effort engineered by AIG Chief Executive Officer Peter Zaffino and his predecessor, Brian Duperreault, to focus on core businesses and simplify operations.

Other insurers have taken similar steps. MetLife Inc. sold its property and casualty business to Zurich Insurance Group AG in 2021. Prudential Financial Inc. sold its full-service retirement arm earlier this year.

The Corebridge offering was led by JPMorgan Chase & Co., Morgan Stanley and Piper Sandler Cos. Bank of America Corp., Citigroup Inc. and Goldman Sachs Group Inc. are also listed as advisers in its filings.

The shares are expected to begin trading Thursday on the New York Stock Exchange under the symbol CRBG.

(Updates with market value in fourth paragraph.)

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