AIG's Corebridge IPO Biggest in 2022 So Far, Fetches $1.7B

American International Group, Inc. AIG announced that its Corebridge Financial, Inc. initial public offering (IPO) is priced at $21 per share. The new entity, previously named SAFG Retirement Services, Inc., is starting to trade on Sep 15. AIG expects the offering to conclude on Sep 19.

Out of a total common stock of 645 million, American International is offering 80 million common shares of this majority-owned subsidiary in the IPO. AIG is expected to hold around 78% of the shares, while Blackstone Inc. BX will hold 9.9%. Gross proceeds from the transaction were around $1.7 billion as the new company fetched a price at the lower end of the marketed range of $21-$24 per share.

The new company is trading under the symbol CRBG on the New York Stock Exchange and has a market value of around $13.6 billion at IPO price. At the second quarter-end, Corebridge Financial had over $350 billion in assets under management and was not expected to raise new capital. Net proceeds from the transaction will likely go to AIG. In the first half of 2022, Corebridge Financial generated $6.4 billion in profits, which more than doubled year over year.

Is the Worst Over?

AIG’s Corebridge is the biggest IPO in the country this year. It can be a turning point for the new listing space, which suffered due to economic uncertainties related to factors like the pandemic, geopolitical tensions and others. Investors are looking forward to a healthier market ahead, following continued market volatility and inflation fears.

Per Bloomberg, less than $20 billion has been raised by 180 companies this year, excluding Corebridge Financial. In 2021, more than 1,000 companies were listed, which fetched around $340 billion, said Bloomberg.

Price Performance

American International’s shares have declined 0.5% in the past year compared with a 14% fall in the industry.

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

American International currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader finance space are Employers Holdings, Inc. EIG and Ares Capital Corporation ARCC, both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Headquartered in Reno, NV, Employers Holdings provides workers' compensation insurance to businesses operating in hazardous industries. The Zacks Consensus Estimate for EIG’s 2022 earnings has increased 5.9% in the past 60 days.

Based in Los Angeles, CA, Ares Capital specializes in rescue financing of middle-market companies. The Zacks Consensus Estimate for ARCC’s 2022 earnings indicates 16.3% year-over-year growth.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.