American International Group (AIG) has launched a secondary offering of common stock for Corebridge Financial.

As the selling shareholder, AIG offers 30 million existing shares of approximately 608 million total shares outstanding. The company also granted Morgan Stanley, the underwriter of the offering, a 30-day option to acquire up to 4.5 million additional shares.

All net proceeds from the secondary offering will go to AIG. The offering is expected to close on June 3, and gross proceeds are estimated at $876 million, with a stock price of $29.20 per share.

Pursuant to the AIG announcement, the underwriter may periodically sell shares of common stock through various methods, including transactions on the New York Stock Exchange, over-the-counter markets, negotiated transactions, or other means, at prevailing market prices, market-related prices or negotiated prices. .

The secondary offering follows AIG’s agreement with Nippon Life Insurance Company to sell approximately 120 million shares of Corebridge common stock.

Read more: AIG sells part of Corebridge stake to Nippon Life for $3.8 billion

Meanwhile, speaking at Bernstein’s 40th Annual Strategic Decisions Conference last week, AIG President and CEO Peter Zaffino (pictured) touched on several topics, including the global insurer’s growth opportunities and the future of its shareholding in Corebridge.

It has been noted that until the Nippon Life deal closes, AIG remains integrated into its life and retirement insurance businesses.

Zaffino pointed out during the conference, “We have to reduce the interest level to less than 47% in order to be able to dismantle.” “We are now at 53%. So, whatever trade we do (next), here are the calculations… Now that we have committed to Nippon, we will do up to a maximum of 15% in this particular calendar year. And after 1/ 1/25, we can sell the remaining 9.9%.”

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