The airplane leasing arm of American International Group (NYSE:AIG) has filed for an initial public offering that could value the bailed-out insurer's wholly-owned subsidiary between $8 billion to $10 billion.
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While the number of shares to be offered, price range and timing have yet to be determined, Reuters reported the deal by the International Lease Finance Corp. (ILFC) could get as much as $1.5 billion.
However, ILFC, which will not receive any of the proceeds from the IPO, said in a regulatory filing said the IPO may not occur in a timely fashion, or at all, due to market or other conditions.
The move comes as companies continue to shy away and postpone IPOs due to uncertainty in the economy.
AIG, which determined that ILFC is not one of its core businesses, intends to sell more than 20% of its stake in the company through the IPO and divest at least 80% of its interest within three years of the offering.
The insurance behemoth did not say what it plans to do with the proceeds. AIG has so far paid the U.S. government back $182.3 billion for its 2008 bailout, leaving it with $51 billion remaining.