(By Balachander) American International Group Inc. (NYSE: AIG) said the U.S. Department of the Treasury has priced an offering of roughly 234.2 million shares of AIG at $32.50 each. AIG shares gained 2.5 percent in Tuesday's premarket trading.
Treasury will have sold the last of its remaining shares of AIG, receiving proceeds of around $7.6 billion from the sale that is expected to close this Friday.
With this sale, Treasury said the overall positive return on the Federal Reserve and Treasury's combined $182 billion commitment to stabilize AIG during the financial crisis is now $22.7 billion.
To date, giving effect to the offering, Treasury has realized a positive return of $5.0 billion and the Federal Reserve has realized a positive return of $17.7 billion.
Over the last 19 months, Treasury has conducted six public offerings of AIG common stock, selling a total of about 1.65 billion shares (originally 92 percent of AIG's outstanding common stock) at an average price of $31.18 per share.
Treasury's $20.7 billion AIG common stock offering in September 2012 alone represented the largest single U.S. common stock offering in history.
Since September 2008, America committed a total of $182.3 billion in connection with stabilizing AIG during the financial crisis. Since then, through asset sales and other actions by AIG, America has not only recovered all $182.3 billion but also earned a combined positive return of $22.7 billion.
In addition, AIG said Treasury will continue to hold warrants to purchase around 2.7 million AIG shares. AIG expects the sale to provide an additional positive return to taxpayers.
BofA Merrill Lynch, Citigroup (C), Deutsche Bank Securities Inc., Goldman, Sachs & Co. (GS) and J.P. Morgan Securities LLC have been retained as joint bookrunners for the offering.
AIG shares closed at $33.36 on Monday.