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Updated from Thursday with additional IPO details

NEW YORK (

TheStreet

) --

American International Group's

(AIG) - Get American International Group, Inc. Report

initial public offering of its Asian life insurance business received a very warm reception in Hong Kong.

AIA Group said shares in the initial public offering will be sold at HK$19.68 each -- the top end of an earlier announced range that started at HK$18.38. The company also raised the size of the offering by 20% to 7.03 billion shares, raising the estimated proceeds to $17.8 billion.

AIG plans to use the proceeds from the offering to help repay bailout funds to the U.S. Treasury.

The stock sale is reportedly the biggest in the Hong Kong Exchange's history.

AIG shares closed Thursday's session down 33 cents at $41.28. Year to date, the shares have risen almost 40%. AIG, which

outlined its plan to repay government bailout funds on Sept. 30

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, still retains an option to sell a further 1.05 billion shares after AIA shares start trading to stabilize the price, the

Wall Street Journal

reports. This would reduce AIG's stake in AIA to 32.9% and lift the total proceeds from the sale to $20.57 billion.

AIA Group shares are expected to make their debut on Oct. 29.

--

Written by Michael Baron in New York.

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Michael Baron

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