American International Group (AIG) announced it will sell another 35 million existing shares of common stock for $20.50 per share, as it continues to raise funds from the retirement services company while remaining a major shareholder.
According to the announcement, the insurer also granted a 30-day option to underwriters to purchase up to an additional 5.25 million shares.
The shares sold by AIG – (out of approximately 630 million total shares of common stock outstanding) corresponded to approximately $718 million in 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 net proceeds from the offering.
JP Morgan is acting as underwriter for the offering. AIG notes that the underwriter may offer 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 existing market prices or 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 rebranded the parent company of its Life & Retirement business from SAFG Retirement Services to Corebridge.