AIA, the Asian unit of U.S. life insurer AIG making an initial public offering in Hong Kong, began offering of 5.86 billion shares on Monday.

Of the total offering, about 586 million AIA shares, or 10 percent of the total, were for public offering in this Asian financial hub, while the other 90 percent, or about 5.27 billion shares, went to the international placing.

AIA had set a price range of 18.38 HK dollars (2.37 U.S. dollars) to 19.68 HK dollars per share.

Without taking the over-allotment option into consideration, AIA is expected to raise as much as 115.3 billion HK dollars, which would make it one of the largest IPOs in Hong Kong this year.

Public offering was expected to close at noon on Thursday. And the offer price was expected to be determined on or around Friday, AIA said in a statement.

As part of the international placing, Chow Tai Fook Nominee Limited, Guoco Management Co. Ltd, Guoline Capital Limited, Hong Leong Assurance Berhad, Kumpulan Wang Persaraan (Diperbadankan), Kuwait Investment Authority, Lorita Investments Limited, NWS Financial Management Services Limited and Wing Trade Investments Limited had agreed to purchase an aggregate of 1.92 billion U.S. dollars worth of shares as cornerstone investors at the final offer price.

Trading of AIA shares is expected to start on the main board of the Hong Kong Stock Exchange on Oct. 29, under the stock code 1299. The shares will be traded in board lots of 200 shares.

After the IPO, AIG is expected to own between 51.4 percent and 32.9 percent of AIA's issued and outstanding share capital, depending on whether and the extent to which, the offer size adjustment option and the over-allotment option are exercised, said the statement. (1 U.S. dollar equals 7.760 HK dollars)