Government funds get behind AIA Group’s Asian float

A glittering array of institutional investors is believed to have become seed investors in this week’s fund-raising for the float of American Insurance Group’s Asian business.

The US$15 billion float of AIA Group, the Asian region subsidiary of the world’s largest insurer, follows the failed trade sale of the business to UK’s Prudential in May. Prudential initially offered $35 billion for AIA Group, but was thought to have reduced this in the due diligence process before then finally withdrawing.

AIA’s parent is selling 48.6 per cent into the listing, which is expected in Hong Kong on October 29.

The largest investor so far mentioned to have backed the early fund-raising effort is the Kuwait Investment Authority, which is said to have committed more than $1 billion. Kumpulan Wang Persaraan, the Government pension fund of Malaysia, is said to have committed $200 million, along with Malaysian property group Guoco Land.

This will be the largest IPO in the region since the Agricultural Bank of China raised $21 billion for a listing in Shanghai and Hong Kong in July.