AIA's $15bln HK IPO receives in-principle approval

AIG is selling assets to help repay $182.3bln government bailout.

AIA Group Ltd., the main Asia unit of bailed-out insurer American International Group Inc., got preliminary approval from the Hong Kong bourse for its initial public offering, said two people with knowledge of the matter.

The in-principle approval from the listing committee paves the way for Hong Kong-based AIA to start gauging investor demand on Sept. 27 for a sale of about $15 billion in shares, said the people, who declined to be identified because the information is confidential. AIG may sell more than half its stake in the IPO, one of the people said.

AIA plans to start a roadshow for the offering on Oct. 6 and trading on the exchange may begin Oct. 29, the people said. An IPO of the planned size would be among the largest on record in Hong Kong, according to data compiled by Bloomberg.

AIG Chief Executive Officer Robert Benmosche is selling assets to help repay a $182.3 billion government bailout. He revived plans for the public offering following the June collapse of a proposed $35.5 billion sale of the unit to Prudential Plc after the U.K.-based insurer’s investors balked at the price.

View the full story in Bloomberg.