AIG’s attempt to IPO its Asian ‘AIA’ business, as a means to raise capital for the still-struggling insurer, has already attracted massive demand.
Just the fact that it is listing in Hong Kong rather than in the U.S. likely a major factor behind it’s success, since fund flows have been pouring into the region.
According to Reuters, Asian IPOs have already raised $90 billion this year, which is more than double the amount of capital raises in the U.S., Europe, Middle East, and Africa combined.
Heavy demand for the AIA IPO is prompting underwriters to close the offer 48 hours ahead of the planned close, sources with direct knowledge of the matter told Reuters. The books will now close on Tuesday, U.S. time, as the underwriters and executives wrap up meetings with institutional investors in Chicago, Boston and New York.
Enormous demand for this new AIA share issue should put New York on notice and speaks to the investor demand that still exists for Asia-listed securities. Would it have done as well if it had IPO’d in New York?