(Yicai Global) April 10 -- The People's Insurance Company of China Ltd., one of the country’s big five insurers, aims to replenish capital by raising CNY10 billion (USD1.6 billion) through an initial public offering on the Shanghai Stock Exchange, marking the biggest listing on China’s A-share market for eight years.
The Beijing-based firm will issue up to 4.6 billion shares, accounting for up to 9.78 percent of its total, excluding overallotment options, states the IPO prospectus posted on the China Securities Regulatory Commission website.
PICC has been reportedly looking to IPO for several years, though its progress was hampered by changes in listing regulations related to fluctuations in China’s stock markets. The listing will make PICC the last of China’s big five insurance firms to be listed in both Hong Kong and on the A-share market. The other companies are China Life Insurance Co., Ping An Insurance Group of China Co., China Pacific Insurance Group Co. and New China Life Insurance Co.
PICC’s book value per share was CNY3.23 before the offering and will be CNY2.91 post-offering if it issues the maximum number of shares, financial news outlet Securities Times estimates based on the prospectus.
The listing will be the 8th biggest IPO in the history of the A-share market in terms of the number of shares offered. Companies exceeding this offering were typically major commercial Chinese banks, as well as state-owned construction and engineering firms, such as Agricultural Bank of China Ltd., China State Construction Engineering Corp. and China Railway Group Ltd.
PICC was the first national insurance company to be set up since the founding of the People’s Republic of China in 1949, and ranked 114th in last year’s Fortune 500 list. The firm posted revenue of CNY488.1 billion last year, with a net profit of CNY16.6 billion.