American International Group Inc. and the Treasury Department priced a big offering of common stock in the insurer at $29 late Tuesday, an important step in the government’s effort to sell its majority stake.
AIG AIG -0.88% is selling 100 million shares and the Treasury Department is selling 200 million shares, for a total of 300 million. That means the offering is set to raise $8.7 billion.
That excludes the so-called greenshoe of 45 million shares. If the underwriters take up their option to purchase all this extra stock, that would raise another $1.3 billion or so for the government.