Asia AIG list in $20b IPO

Bailed-out US insurance giant AIG is planning to list its Asian unit in Hong Kong by the second quarter of 2010 in a sale that could raise as much as $20 billion, a report said Thursday. American International Group, which said in May that it planned to float American International Assurance, was expected to file a prospectus before Christmas, the Financial Times said, citing unnamed sources. If Hong Kong regulators approve the initial public offering, it could be one of the world's largest share sales, the paper said. Dow Jones Newswires said the company has now submitted a listing application to Hong Kong's stock exchange, citing an unnamed source. The listing represents an attempt to distance the Asian insurance arm from its parent group, whose reputation has been hit by a huge Washington bailout at the end of last year after it was battered at the onset of the credit crunch. Proceeds from the planned sale could be used to help repay some of the more than $80 billion that AIG owes the US government, the report said. AIG confirmed its listing plans for the unit earlier, but declined to give a timeline, saying it was 'dependent on market conditions and regulatory approvals.'