Corebridge Financial, Inc. (CRBG) priced its IPO – the biggest of the year – at $21, the low end of its $21-to-$24 range, on Wednesday night (Sept. 14, 2022). All 80 million shares – all offered by Corebridge Financial’s parent, AIG – were sold. The IPO raised $1.7 billion. But Corebridge will not see a penny of that. American International Group (AIG), the selling stockholder, will receive the proceeds.
The $21 IPO price matches the whisper number. The word on the Street was that $21 was the price that big institutional investors were willing to pay.
J.P. Morgan, Morgan Stanley, Piper Sandler, BofA Securities, Citigroup and Goldman Sachs were the joint book-runners. The co-managers’ list included 43 banks.
Shares of Corebridge Financial (CRBG) are expected to start trading Thursday on the New York Stock Exchange.
Corebridge Financial, AIG’s individual and group life insurance and retirement business, attracted IPO investors’ attention with the sound of money:
- It plans to pay a quarterly dividend of 23 cents a share after the IPO.
- It earned net income of $7.7 billion on $24.2 billion in revenues for the 12 months that ended March 31, 2022.
- Its life insurance (including annuities) and retirement business is perceived as positioned well for growth due to the demographics of a rising population of people ages 65 and up.
“It’s a money machine,” a seasoned IPO pro says.
Corebridge Financial has a valuation of about $13.6 billion, based on the $21 IPO price.
After the IPO, parent AIG will still own about 78 percent of the outstanding stock and a Blackstone affiliate, a principal stockholder, will still own a 10 percent stake.
Wall Street will be watching Corebridge Financial’s debut intently on Thursday morning.
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