AIA Group 1299

Re: AIA IPO

Postby iam802 » Tue Sep 07, 2010 6:23 pm

Once they got listed, they will gobbled up others.

Maybe that's why Prudential wants to buy them before they got listed.

I TCSS here.

I'm sure there will be members in this forum who have done a quick glance at the various valuation.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

TA and Options stuffs on InvestIdeas:
The Ichimoku Thread | Option Strategies Thread | Japanese Candlesticks Thread
User avatar
iam802
Big Boss
 
Posts: 6353
Joined: Wed May 07, 2008 1:14 am

Re: AIA IPO

Postby winston » Tue Sep 07, 2010 7:37 pm

iam802 wrote:Once they got listed, they will gobbled up others.


No, I dont think so.

Assuming they get about US$15b from the IPO by listing half the company, that US$15b would be returned to the US government immediately...
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118539
Joined: Wed May 07, 2008 9:28 am

Re: AIA IPO

Postby winston » Tue Sep 07, 2010 8:16 pm

AIG seeks Sept 21 approval for AIA IPO: sources By Clare Jim and Kennix Chim

HONG KONG (Reuters) - American International Group Inc plans to seek Hong Kong listing committee approval on September 21, to list its Asian life insurance unit, aiming to raise about $15 billion, two sources with direct knowledge of the deal said on Tuesday.

AIG, which is nearly 80 percent owned by the U.S. government, is disposing of assets to repay taxpayers as part of the $182.3 billion bail out package that rescued the insurer during the 2008 financial crisis.

Last week, AIG filed an application with the Hong Kong Stock Exchange to list AIA. While a listing committee hearing usually takes place about four weeks after the application, the hearing date for AIA's IPO comes earlier than expected, meaning the deal could hit to the market in October instead of the earlier plan for November.

AIA would hold an analyst briefing on September 10, another three sources familiar with the matter said, planning to kick off a road show in early or mid-October.

The sources declined to be identified because they were not authorized to speak to media.

AIA's IPO comes after AIG tried unsuccessfully to sell the business earlier this year to Britain's Prudential Plc for $35.5 billion.

AIG had scrapped a plan to sell a strategic stake in AIA ahead of its IPO, a source familiar with the process said earlier.

The focus for the IPO is centered on discussions on the sale of cornerstone stakes. The success of AIA's IPO will hinge largely on demand from cornerstone investors, as was seen in the record-breaking IPO of Agricultural Bank of China Ltd in July.

Citigroup Inc, Deutsche Bank AG, Goldman Sachs group Inc and Morgan Stanley are joint global coordinators for the IPO. Bookrunners include Bank of America Merrill Lynch, Barclays Capital, CIMB, Credit Suisse group AG, ICBC International, JP Morgan and UBS AG.

http://www.reuters.com/article/idUSTRE6 ... orethebell
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118539
Joined: Wed May 07, 2008 9:28 am

Re: AIA IPO

Postby winston » Mon Sep 20, 2010 8:52 pm

AIA To Seek Hong Kong Listing OK Tuesday; Plans To List Oct 29 - Sources

HONG KONG -(Dow Jones)- American International Group Inc.'s (AIG) pan-Asia life insurer, AIA Group Ltd., is seeking to raise around US$15 billion from a Hong Kong listing on Oct. 29, and plans to seek approval from Hong Kong's regulators for the deal Tuesday, two people familiar with the matter said Monday.

AIA filed an A1 Form, the first formal step in declaring an intent to list in Hong Kong, early this month, paving the way for what could be the world's second-biggest IPO this year.

If it gains listing approval Tuesday, AIA will start pre-marketing Sept. 27, and begin the roadshow Oct. 6, the people said.

AIG is majority owned by the U.S. government after a massive bailout two years ago, and is listing AIA to help repay U.S. taxpayers.

Hong Kong bourse operator Hong Kong Exchanges & Clearing Ltd. and AIA declined to comment.

Source: Nisha Gopalan, Dow Jones Newswires

http://www.nasdaq.com/aspx/stock-market ... 29-sources
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118539
Joined: Wed May 07, 2008 9:28 am

Re: AIA IPO

Postby winston » Tue Sep 21, 2010 7:31 am

AIA, the Asian insurance unit of American International Group, plans to have a listing hearing today.

If the flotation gets the green light, pre-marketing will start on Monday and the roadshow on October 6.


Source: The Standard, HK
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118539
Joined: Wed May 07, 2008 9:28 am

Re: AIA IPO

Postby winston » Sun Sep 26, 2010 9:58 am

NEW YORK - AMERICAN International Group Inc says the Asian life insurance unit it plans to spin off will make an operating profit of at least US$2 billion (S$2.6 billion) this fiscal year.

AIG disclosed the forecast for AIA Group on Saturday. AIA reported pretax profit of US$1.3 billion in 2009.

AIG said in July it would conduct an initial public offering of AIA Group on the Hong Kong Stock Exchange after a US$35.5 billion deal to sell AIA to Prudential PLC fell through.

AIG is selling assets to help pay back US$180 billion in US government bailout funds it received in 2008. CEO Bob Benmosche said last month that when the IPOs of AIA and the American Life Insurance Co are completed, AIG will be 'within striking distance of completing our repayment'.

Source: AP
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118539
Joined: Wed May 07, 2008 9:28 am

Re: AIA IPO

Postby winston » Mon Sep 27, 2010 6:48 am

Growth set to be timely for AIA

American International Assurance is expected to see its operating profit reach at least US$2 billion (HK$15.6 billion) for the year ending November 30, following strong growth in premium income and new business sales in the first nine months.

The Asian insurer begins pre-marketing today for its initial public offering to raise up to HK$116.3 billion.

AIA's total weighted premium income for the first nine months climbed 11.3 percent to US$9.33 billion, with Thailand's contribution growing 14.2 percent to US$1.91 billion, said parent American Insurance Group.

The value of new business surged 23.5 percent to US$463 million, and its margins were more profitable at 33 percent, against 27 percent previously.

But the value of new business value in Hong Kong and South Korea declined in the quarter ended August 31 to US$45 million and US$12 million, respectively.

Hong Kong-based AIA had about US$1.84 billion in pretax operating profit last year.AIG is trying to sell assets to repay a US$182.3 billion bailout loan from the US government.

AIA's roadshow begins next Wednesday and its debut is scheduled for October 29.

MANDY LO


http://www.thestandard.com.hk/news_deta ... 00927&fc=1
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118539
Joined: Wed May 07, 2008 9:28 am

Re: AIA IPO

Postby winston » Mon Oct 04, 2010 10:23 am

AIG lowers Asian unit IPO valuation to woo Kuwaitis

LONDON — US insurer AIG has been forced to reduce its valuation for the Hong Kong initial public offering of its Asian unit AIA to win the commitment of Kuwait's sovereign wealth fund, a report said Monday.

AIG had to drop its initial plan to sell shares in AIA at a level that would value the company at 35-37 billion dollars (25.4-26.9 billion euros) to secure the backing of the Kuwait Investment Authority, the Financial Times said.

The fund signed up to the IPO based on AIA being valued at between 30 billion and 32 billion dollars, said the FT, citing people familiar with the matter.

AIA was forced to lower the valuation to secure a one-billion-dollar commitment from the Kuwait fund and other cornerstone investors, said the paper.

A number of Hong Kong tycoons are among other big investors to have signed up for cornerstone stakes, according to the FT.

AIG, which owes billions of dollars in US government bailouts, plans to sell 30-50 percent of its Asian unit in the offering but has still not decided exactly how much and at what price, said the FT.

AIA was talking to institutional investors such as BlackRock and Capital Group over the weekend to try and secure major investments, according to the report.

Last month, the insurer won approval for a Hong Kong share sale of its Asian unit in what could be the world's second-biggest initial public offering this year, Dow Jones Newswires reported.

An investor roadshow starts this week and the shares will be priced on October 21. AIA is expected to list on October 29, according to Dow Jones Newswires.

AIG was forced to look again at the option of publicly floating AIA in Hong Kong after the collapse in June of Prudential's 35.5-billion US dollar takeover bid.

Agricultural Bank of China claimed the world's biggest IPO in August when it confirmed it had raised 22.1 billion US dollars, after its shares debuted in Hong Kong in July.


Source: AFP
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118539
Joined: Wed May 07, 2008 9:28 am

Re: AIA IPO

Postby winston » Mon Oct 04, 2010 4:37 pm

BUSINESS OCTOBER 4, 2010, 4:19 A.M. ET AIA Valued at $30.5 Billion in HK IPO
By ALISON TUDOR

HONG KONG—The initial public offering of AIA Group Ltd., the pan-Asian life unit of American International Group Inc., could value the firm at up to $30.5 billion in a Hong Kong listing, a person familiar with the deal said Monday.

AIG, which is listing AIA to help repay U.S. taxpayers after a huge government bailout in 2008, is planning to float about half of its Asian insurer, he said. The $30.5 billion valuation represents the top end of a price range for the offering expected to be announced officially Tuesday.

AIA has secured around $1 billion from the Kuwait Investment Authority, another person familiar with the deal said Monday.

AIA is slated to list in Hong Kong on Oct. 29, with the road show set to begin Tuesday, and pricing on Oct. 21, according to a term sheet.

http://online.wsj.com/article/SB1000142 ... 78938.html
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118539
Joined: Wed May 07, 2008 9:28 am

Re: AIA IPO

Postby winston » Wed Oct 13, 2010 11:18 am

Not vested. From Phillips:-


Risk analysis

1. The growth of operating profit is mainly come from the growth of investment income. However, if the global market went down, the growth of company will be seriously harmed.

2. Although AIA has signed bancassurance agreement with ICBC (1398.HK), it is uncetain that whether company can effectively enhance the market share in China because of the prowess of China insurance companies.


Valuation

The offering price of AIA is reasonable. The estimated PE ratio ranges from 14.1 to 15.0. The ratios are similar to that of Prudential (2378.HK) which previously attempted to purchase AIA.

The ratios are far lower than that of China insurance companies, but higher than that of international giant insurance companies, including mother company AIG (AIG.US) and ING (ING.US).

Company forecasts that for the year ending 30 November 2010 the operating profit is expected to be not less than US$2,000 million. And the net profit attributable to the shareholders of AIA Group Limited for the year ending 30 November 2010 is expected to fall within the range of US$1,400 million and US$2,300 million.

According to the report from sponsor, Morgan Stanley, the forecast price to embedded value ranges from 1.29 to 1.41 and the price to book value is 1.9.

We assume that the forecast PE ratio and the earning per shares of company are 18 and $1.26 respectively. It is because company benefits from the economic growth of Asia Pacific, the increase in investment income and the enhancement of market share in China market.

According to this, the 12-month target price is $22.6. Compared with the upper limit of offering price range, there is around 15% increase and the recommendation is subscribe.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118539
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to A to B

Who is online

Users browsing this forum: No registered users and 9 guests

cron