AIG Might Be Worth A Look On Strong IPO Demand (AIG)

AIG

might be worth a look here for a short-term trade to the upswing, as its Asian investment unit had much stronger than

for its IPO. It shut the order book a full 2 days before expected, as institutional demand was far higher than expected. AIG is expected to use these funds to pay back a portion of the funds it owes the U.S. government, which bailed it out back in 2008, in what was the largest single bailout in U.S. history. Investors could expect to see a short term bounce in AIG shares, as the IPO being this oversubscribed is positive news for the company, and the market should reflect that in shares. AIG is up a little bit over 1% in pre-market trading, and I could potentially see shares trading up to $44 on this positive news. As AIG continues to repay the government by selling assets, AIG will become a leaner company, and the market should reflect that with a higher share price. Disclosure: no position in AIG