AIG Life/Pension Unit Corebridge Valued at $13 Billion

0
13
THE BHARAT EXPRESS NEWS INSURANCE NEWS
THE BHARAT EXPRESS NEWS INSURANCE NEWS

Shares of Corebridge Financial Inc opened 2 percent below the IPO price during its debut on the New York Stock Exchange on Thursday, giving the company a valuation of $13.2 billion, diminishing hopes of a rebound in U.S. quotes. as the market turmoil erodes investor confidence.

The lukewarm reception of the largest US IPO so far this year comes against the backdrop of a global market turmoil that has shaved billions of dollars off company valuations.

The Russian invasion of Ukraine and US inflation hovering at a 40-year high have dampened investor sentiment and dried up the IPO market in 2022.

ALSO READ  Cyber ​​Threats Still No. 1 Business Problem: Traveler Risk Index in 2022

Greek yogurt maker Chobani, which sources say was seeking a $10 billion valuation, scrapped its IPO plans this month, citing market conditions.

The pipeline for companies looking to IPO remains healthy and includes several major tech startups such as Reddit, Instacart and Intel’s Mobileye. But companies have been forced to await this period of runaway inflation and aggressive rate hikes that plagued Wall Street this year.

“Profitability and stable business models are likely to continue to be the main focus for investors in the near term,” said Avery Spear, senior data analyst at Renaissance Capital, adding that Corebridge’s target valuation was more modest than expected due to challenging market conditions.

ALSO READ  ECB limits purchases of long-term debt issued by Climate Laggards

The $1.68 billion raised from the IPO will go to Corebridge’s parent company, insurer American International Group Inc AIG.N, and the new company is raising no capital, according to regulatory filings.

The listing marks the culmination of a long-standing effort by AIG, which first announced the decision to separate its life insurance and pension business from its property and casualty business in 2020.

ALSO READ  Storm Ian weakens as millions are without power

Shares opened at $20.50 each, below their bid price of $21 each.

The IPO was underwritten by more than three dozen investment banks, led by JP Morgan, Citigroup, Morgan Stanley, Goldman Sachs, Bank of America and Piper Sandler.

(Reporting by Niket Nishant and Manya Saini in Bengaluru; editing by Vinay Dwivedi)

The most important insurance news, in your inbox every working day.

Receive the trusted insurance industry newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here