October 18, 2010 (Chinavestor) Several major Chinese financial services firms are looking to participate in the initial public offering of American International Group's (NYSE:AIG) Asian business, AIA, which is scheduled for later this month. AIG (NYSE:AIG), which is looking to raise capital to repay loans from the U.S. government, could raise up to $20 billion through the IPO.
China Investment Corp., China's $300 billion sovereign wealth fund, and Ping An Insurance (HKG:2318) are both reportedly interested in acquiring chunks of the AIA IPO. China Life Insurance (NYSE:LFC), the world's largest insurance firm, is also interested in an AIA stake.
China Investment Corp. may pursue a stake of up to $250 million, according to the Financial Times. AIG's (NYSE: AIG) underwriters had pursued Chinese investors, including China Investment and China Life (NYSE:LFC) to back the deal to go along with noteworthy U.S. investors Bruce Berkowitz and John Paulson.
If AIA sells 8 billion shares it would raise up to $30.5 billion.