AIA Group's US$15 billion initial public offering, which kicks off today, is expected to be popular among mainland insurance companies and international fund managers because of the Asian insurance market's growth potential, reports the South China Morning Post.
The Post notes that AIA's share sale could be the second-largest IPO in Hong Kong this year, after Agricultural Bank of China, which in July raised US$21.9 billion in Hong Kong and Shanghai.
While the AIA offering would be the focus of the month, it could be affected by recent weak market sentiment, says the Post. Manulife Financial's insurance stocks are not trading very well, which could affect investor interest in AIA. According to the Post, Manulife closed at HK$96.85 on Monday, down 0.46 per cent from the previous close and well below the HK$125 it was trading at in August and its one-year high of HK$169.
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