IPO demand sees AIA 'shut its book early'

Heavy demand for AIA Group's up to $20.5bn (£13bn) share sale in Hong Kong prompted underwriters to shut the offer to funds two days ahead of schedule, sources said.

The strong interest from traditional funds and high-profile Chinese investors in the sale of the unit of American International Group comes amid a flood of Asian IPOs that have cemented the region's dominance in initial public offerings this year.

AIA's books will now close today, as the underwriters and executives wrap up meetings with institutional investors in Chicago, Boston and New York, sources said.

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China Investment Corp, the $300bn China state sovereign wealth fund, and Chinese corporates such as China Life Insurance, are among the investors queuing for the offer, they added.

One source said CIC was interested in buying up to $200m worth of shares in AIA. CIC could not be reached for a comment. AIA declined to comment.

Globally, investors seeking better yields and cashed-up domestic institutions have piled on big Asian share deals this year, seeking to tap the region's resilient economic growth.

Robust foreign fund inflows have also fuelled a strong rally in the region's stock markets, driving many to multi-year highs, encouraging issuers from India to Malaysia to launch record deals.

An IPO boom is good news for underwriters and banks in Asia have earned about $2.3bn in underwriting commissions.

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