The US Department of Treasury is likely to sell the remaining nearly 234.2 million shares of American International Group (AIG) common stock, in a public offering, marking end of government ownership of the company.
Following the completion of offering, Treasury would continue to hold warrants to purchase AIG’s common stock that were also issued as part of AIG’s participation in Treasury programs.
As per closing share price of AIG per share of $33.36 on 10 December, these remaining stake would be estimated approximately $7.81bn.
The US government injected $182.3bn capital into AIG during the financial crisis of 2008, when the underwriter was on the edge of bankruptcy.
BofA Merrill Lynch, Citigroup, Deutsche Bank Securities, Goldman, Sachs & Co and JP Morgan Securities have been appointed as joint bookrunners for the offering.
Headquartered at New York, AIG serves nearly 88 million customers in 100 countries across the world and has a work force of 62,000 staff.