AIG to Delay Stock Offering Until Late April or May
American International Group, the insurance behemoth whose “re-IPO” could be the year’s biggest public stock offering, has opted to delay the deal to late April or May, according to people familiar with the company’s thinking.
As part of its large secondary offering, nicknamed the re-IPO because its current public float is relatively small, AIG is expected to sell between $10 billion and $30 billion to the public. The U.S. Treasury, which rescued the struggling insurer with a series of cash bailouts during the financial crisis, will be the primary seller in the deal.
Market conditions permitting, AIG had planned to launch the deal as early as March, people familiar with the deal have said. But because an elaborate investor-education program will be required in order to help potential shareholders understand the complex financial company, say the people familiar with AIG’s thinking, the insurer decided late last week to delay the re-IPO until later this spring.
Any public offering will have to wait until AIG reveals its fourth-quarter results later this month. The company is expected to release that information during the last week of February, say people familiar with the matter, and issue its 10-K filing around that time.
Once those disclosures are made, the company is free to go on the road until April, at which time AIG, which operates on a fiscal calendar year, will be restricted from selling shares to the public for a few weeks. The next opening for a re-IPO marketing effort, then, will be late that month or early in May.
A spokesman for AIG declined to comment.
*This post has been updated.