According to reports, American International Assurance Co Ltd (AIA), the Asian Life insurance subsidiary of insurance major American International Group, has decided not to issue new shares in its targeted initial public offering in Hong Kong.

Meanwhile, the sources added that the company has started the pre-marketing event on September 26.

The company expects the listing of AIA will support pay back the bailout capital from the US government.

AIA is planned to initiate the IPO marketing tour on Oct 5, set the IPO price on Oct 21 and list on the Hong Kong Stock Exchange of Oct 29 of this year.

The company's holding interest in AIA will have a 6-month lockup period.

In a statement released by a source known to the matter, AIA is looking forward to lift between US$10 billion and US$15 billion through the initial public offering (IPO).

This would become the world's second-biggest IPO so far 2010, only after the IPO size of Agriculture Bank of China Ltd.

Earlier this year, the Agriculture Bank of China lifted around a combined US$22.1 billion from a double-listing in HK as well as Shanghai, making it the world's largest IPO.

In the meantime, Citigroup Inc, Goldman Sachs Group Inc, Deutsche Bank AG and Morgan Stanley are hired for AIA's IPO deal.

Earlier, a source said that AIG is planning to sell up to 50 percent stake in AIA, but no final call has been made yet.