Shares of American International Group Inc fell more than 3 percent on Wednesday after the insurer and the U.S. Treasury sold $8.7 billion worth of stock.

The shares were down 3.3 percent at $28.48 in early trading on the New York Stock Exchange.

AIG and Treasury sold 300 million shares for $29 each on Tuesday. The sale by Treasury of 200 million shares reduced its stake in AIG to 77 percent from 92 percent, but it still has 1.5 billion shares left to sell to fully exit its investment.

Treasury needs to sell all of its shares at an average price of $28.73 to break even on its investment in the insurer.

Underwriters on the offering were led by Bank of America Merrill Lynch, Deutsche Bank Securities, Goldman Sachs & Co and JPMorgan.

(Reporting by Clare Baldwin; Editing by Derek Caney and Lisa Von Ahn)