AIG's Corebridge slips in tepid debut

Third Harmonic Bio

15/09/2022 18:12

** Shares of Corebridge Financial Inc  CRBG.N  fall in debut
in biggest U.S. IPO of 2022, snapping months-long drought in
major listings
    ** Surging interest rates and heightened market volatility
have sapped investor risk appetite, freezing the IPO market
    ** CRBG opens at $20.50, below $21 IPO price
    ** American International Group  AIG.N  sold 80 mln shares
of its life insurance and retirement services unit at bottom of
$21-$24 marketed range for $1.68 bln raise  urn:newsml:reuters.com:*:nL1N30L2X0
    ** AIG owns ~78% of co, while private equity firm Blackstone
Inc  BX.N  holds ~10%
    ** IPO values Corebridge at ~$13.5 bln, 0.65x its stated adj
book value of $21 bln
    ** At IPO price, stock yield equates to 4.4% (based on $0.23
qtrly cash dividend)
    ** Return of capital to stockholders beyond dividends,
including share buybacks, could begin within six to nine months
after the IPO (See filing https://www.sec.gov/Archives/edgar/data/1889539/000114036122033045/ny20001795x18_s1a.htm)
    ** JP Morgan, Morgan Stanley, Piper Sandler, BofA, Citigroup
and Goldman Sachs leading 40-plus-firm underwriting group for
the IPO
    ** Credit Suisse, which was not an IPO underwriter, started
coverage with "outperform" and $26 PT just prior to co's debut
 urn:newsml:reuters.com:*:nL1N30M1XF
    ** In contrast on Thurs, shares of allergy/inflammatory
disease-focused biotech Third Harmonic Bio  THRD.O  jump in
their debut after IPO upsize  urn:newsml:reuters.com:*:nL1N30M1N9

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))