American International Group (AIG) has announced it will sell off another 35 million existing shares of common stock at $20.50 per share, as it continues to raise funds from the retirement services company while remaining the major shareholder.
According to the announcement, the insurer has also granted a 30-day option to the underwriters to purchase up to an additional 5.25 million shares.
The shares AIG is selling – (out of approximately 630 million total shares of common stock outstanding) correspond to approximately $718 million of gross proceeds.
This move is set to raise more capital for AIG, while also reducing its stake in the company. AIG disclosed that it will receive all of the net proceeds from the offering.
J.P. Morgan is acting as the underwriter for the offering. AIG noted that the underwriter may offer the shares of common stock from time to time for sale in one or more transactions on the NYSE, in the over-the-counter market, through negotiated transactions or otherwise, at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.
The offering is expected to close on December 5, 2023, subject to customary closing conditions.
The sale comes less than a month after AIG sold 50 million shares of Corebridge to raise approximately $1 billion.
AIG launched an initial public offering of Corebridge in September 2022, pricing it at $21 per share. In the same year, AIG had rebranded the parent company of its Life & Retirement business from SAFG Retirement Services to Corebridge.
