Life and Retirement Profession American International GroupThe first day turned dismal, with shares falling below their offer price.
Corebridge stock (ticker: CRBG) started at $20.50 and closed at $20.73. On Thursday, the stock did not trade above Corebridge’s offer price of $21, making it a Broken deal.
Volatility hinders IPOs, which feed the broader market. stocks were mostly less Markets continue to adjust to the prospect of even tighter monetary policy from the Federal Reserve as of Thursday.
The Dow Jones Industrial Average dropped 68.72 points, or 0.2%, while the S&P 500 fell 0.8% and the Nasdaq Composite 1%. Year-to-date, the Nasdaq is down nearly 26%, while the S&P 500 is down 18%, and the Dow is down 21%.
Late Wednesday, Corebridge sold 80 million shares at $21, below the $21 to $24 price range, according to a Statement,
JPMorgan, Morgan Stanley and Piper Sandler are the principal underwriters of the deal.
At $20.73, Corebridge is valued at approximately $13.4 billion. The Houston company raised $1.68 billion with its offering, making Corebridge the biggest IPO of the year. It surpassed the $1.1 billion it raised by TPG in January, which, according to DeLogic, was the biggest IPO of the year.
Corebridge’s offering was widely anticipated. Fears of a recession, a contraction in the stock market and the war in Ukraine have slowed IPOs this year.
Only 73 companies have gone public using traditional IPOs in 2022, raising $5.3 billion. This is the lowest offering since 2016, when 56 IPOs raised $11 billion.
The Corebridge IPO was not expected to open up the IPO market – instead, if it performs well, the offering may stabilize. It did not happen. The pace of IPOs is expected to be slow this year.
All 80 million shares are coming from AIG and Corebridge itself will not receive any proceeds from the offering. After the IPO, AIG will own about 76% of Corebridge.
Corebridge is one of the largest providers of retirement and insurance products in the US, including life insurance and annuities. catalog, The Houston Company has more than $350 billion in assets under management and administration as of June 30. Blackstone (BX) invested $2.2 billion in November 2021 and holds a 10% stake.
Write to Louisa Beltran at [email protected]
Credit: www.marketwatch.com /