Talk about an entrance. Corebridge Financial, Inc. (CRBG proposed) woke up the IPO market with the news after Tuesday’s closing bell that its initial public offering aims to raise $1.8 billion – making it the largest IPO of the year. Not a penny will go to the retirement and life insurance services company. American International Group (AIG), the parent of Corebridge, is spinning it off by selling all the shares in the IPO: 80 million shares at a price range of $21 to $24, according to the S-1/A filing dated Sept. 6, 2022. The document was released by the SEC via EDGAR just minutes after Tuesday’s close.
J.P. Morgan, BofA Securities, Morgan Stanley, Citigroup, Piper Sandler and Goldman Sachs are the joint book-runners. The co-managers’ list reads like a Who’s Who of Wall Street.
Corebridge Financial is expected to price its IPO next week – on Wednesday, Sept. 14, 2022. The stock is expected to start trading on Thursday, Sept. 15, on the New York Stock Exchange.
The return of the big banks to the IPO playing field – after months on the sidelines – is a sign that the IPO market is picking up steam. The timing is classic. The IPO market usually gets back into full swing after Labor Day. The fact that Corebridge disclosed the terms for its IPO on Tuesday – Wall Street’s first day back at work after the Labor Day holiday – is worth noting.
For months, IPO professionals have been saying they believe the IPO market will pick up the pace after Labor Day. This has been the mantra of hope in one of the worst years ever for IPOs, in terms of deal volume and money raised.
Now there’s a $1.8 billion IPO on the IPO Calendar – a fact to back up the hope.
Here’s one more fact worth noting: Corebridge Financial is a money machine. The company earned net income of $7.7 billion on revenue of $24.2 billion for the 12 months that ended March 31, 2022, according to the prospectus.
That’s serious money.
Wall Street will be watching the IPO Pipeline intently to see if more profitable companies set terms and land on the IPO Calendar in the next few days and weeks.
Stay tuned.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
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Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.
Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums), is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.