Treasury Sells More AIG Shares Than Planned, a Great Offering for Taxpayers
Itβs official! Not only was the U.S. Treasury sale of American International Group Inc. (NYSE: AIG) shares an overwhelming success, the AIG share overallotment was exercised as well. Now the taxpayers are not only whole on their bailout capital. They…
The Treasury now expects to receive an additional $2.7 billion from its overallotment shares. The underwriters have already exercised their over-allotment option in full, so another 83.1 million shares of AIG common stock were sold at $32.50 per share.
The offering of 553.8 million shares at $32.50 per share brought in proceeds of roughly $18.0 billion. Combined with the exercise of the over-allotment option, the Treasuryβs sale proceeds are now about $20.7 billion and the total number of shares sold is roughly 636.9 million shares.
Todayβs secondary offering will have taken the Treasuryβs stake in AIG from 53.4% all the way down to about 15.9% of AIGβs common stock outstanding.
AIG may still be hated by much of the public, but the taxpayers are now profitable and still own a rather large stake to boot.
If you want to know how successful this offering was, the $32.50 price was never even hit today as the low was $32.56. Shares are down only 0.8% at $33.04 with just under an hour to go.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.