HONG KONG, Oct 7 (Reuters) - CLSA has recommended that investors participate in AIA Group's initial public offering at the low end of the indicative price range, in the first independent research report from a brokerage not involved in the transaction.
AIA's IPO could raise as much as $20.5 billion, including a rare upsize option, according to a term sheet seen by Reuters. At the top end, AIA will be valued at $30.5 billion. [ID:nLDE69328B].
"It's not a screaming buy," CLSA analyst Patricia Cheng said in a report dated Oct. 6. "The appeal of Asia lies in growth, which is what the AIA today seems to lack."
"The IPO will establish a new identity, allowing it to explore acquisitions with the potential retreat of global insurers. We do expect a turnaround upside, but its biggest rivals are actually local plays and banks." (Reporting by Denny Thomas; Editing by Chris Lewis)