Biggest IPO of the year so far: just worth $13.6 billion

Insurance giant (AIG)


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Completes the issuance of its retirement arm, CoreBridge. AIG’s IPO arm has raised $1.68 billion in the biggest initial public offering of 2022 – with the new company starting to trade at a valuation of $13.6 billion. In the IPO, AIG sold about 80 million shares at $21 a share, the low end of the forecast range of $21-24. The offering was planned for the second quarter of the year but the falls in the markets forced AIG to wait. In practice, the stock starts trading below the IPO price, at $20.50 per share.

Who will receive the money from the offering? Not the new company, but AIG, which currently manages more than $350 billion and will continue to own approximately 78% of CoreBridge’s shares. The one who will hold another 10% of the shares is Blackstone.

Corbridge reported a profit of $6.4 billion on revenue of $15.7 billion in the six months ending in June. Its profit more than doubled compared to the corresponding period last year. The company began trading this evening under the symbol CRBG.

Last year, companies worth 50 and even 77 billion dollars were issued. Where is it and where is Wall Street today
But what is amazing here is the comparison between this year and the previous year or two. The hype of the big wave of IPOs has undoubtedly exploded. The largest IPO of the year 2022 is carried out according to the value of 13.6 billion dollars, while last year and the year before, companies were issued with values ​​of 30, 50 and even more. For example, last year they were issued – Robinhood


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Didi the Chinese


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and many others. Rivian


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There was last year’s record IPO at an absolutely insane $77 billion valuation. Rivian even managed to jump to a value of 150 billion dollars, before crashing to 20 billion dollars just recently.

The second largest issue since the beginning of the year was even before the falls, and for only 1.1 billion dollars
Does this mean that the IPO market is starting to return to activity? It’s still too early to say. For comparison, the second largest IPO this year so far was by the private equity firm TPG, at a value of $1.1 billion, and this happened in January – before the major falls in the markets began. Since then, companies have not been able to obtain significant values.

How much money did Wall Street companies raise this year? Almost nothing compared to last year
Since the beginning of the year only 20 billion dollars, compared to 340 billion last year. Another count talks about 402 billion dollars last year, and if you add the spikes you get 594 billion dollars. So the market for the time being is not really in recovery. Perhaps waiting for a new bull market in which companies will once again be issued at high prices. Issuances of everything possible are a hint of falling battles in the markets. We’ve warned about this several times since the beginning of 2021, but you don’t have to be too smart to know that. It is enough to see what happened in history – and of course the result came.

AIG is not the first. MetLife sold its property and casualty arm to Zurich Insurance last year. This year, Prudential Financial also sold its pension plan arm.

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