THE Hong Kong listing of AIG's Asian unit, which aims to raise funds for repaying United States federal bailout loans, has been expanded to US$20.5 billion.

AIA Group Ltd has said it raised the number of shares offered from 7.03 billion to 8.08 billion.

The shares were priced at HK$19.68 (US$2.54) each and surged 17 percent on their first day of trading on Friday to close at HK$23.05.

The proceeds from the Hong Kong IPO will be used to repay US$20 billion AIG owes the Federal Reserve Bank of New York.

American International Group Inc received US$182 billion from the US government after suffering massive losses from investments in complex derivatives - the biggest of the Wall Street bailout packages.

The IPO was Hong Kong's biggest ever and the world's third-largest