AIG separates Asian division AIA through IPO

American International Group Inc (AIG.N) stated it aimed to accelerate its plans on separation of its Asian subsidiary, American International Assurance Co Ltd (AIA Group), a leading life insurance organization in Asia, through an initial public offering.

However, it is forecasted that one of the listing, which is expected to be one of the largest Asian IPOs to hit the market since early last year, will depend on market conditions. Moreover, the decision is subject to regulatory approval.

It should be reminded that AIG had already tried to sell AIA in a private transaction for up to $20 billion last year, however, it was failed to find a buyer willing to pay such a price.

Moreover, it is known that AIG had previously stated it could initially sell up to 20 percent of AIA's market value in an initial public offering, so rising the size of AIA's public listing up to $4 billion.