AIG Asia share offering may raise lead banks a cool $350m
MORGAN Stanley and Deutsche Bank are expected to net as much as $350m (£214m), after being named as global co-ordinators of the stock market flotation of AIG’s Asian life insurance arm.
The US and German investment banks are running the giant initial public offering of American International Assurance (AIA), which is being sold off as bailed-out US insurer AIG scrambles to raise capital.
The banks will earn between $125m and $175m, based on the usual 2.5 per cent to 3.5 per cent fee range if the group raises $5bn for the offering, according to Thomson Reuters and Freeman.
If the offering hits top-end estimates of $10bn, the fee could be much higher.
Over thirty investment banks pitched for a role in the share offering, and eleven are thought to have been interviewed by AIG to select the final two.
Morgan Stanley was nominated as a banker to the placing by the US Federal Reserve, as the firm has been advising the US government on the AIG capital-raising saga.
AIG is raising cash to pay off a government bailout worth $180bn.