(Yicai Global) June 18 -- China Pacific Insurance Group has issued global depositary receipts in the United Kingdom via the Shanghai-London Stock Connect program, becoming the second company to do so.

The Shanghai-based company has picked up USD17.60 apiece to raise a total USD1.8 billion and the bills should start trading on June 22, the Shanghai Stock Exchange said online yesterday. The firm had earlier said it would price the receipts, which can be issued worldwide on multiple financial markets, at between USD17.60 and USD19 each.

Total subscriptions and the issue price are better than expected given the Covid-19 pandemic, the event that spurred the company to issue shares overseas, China Pacific Chairman Kong Qingwei told Yicai Global.

“This shows investors are confident about China’s insurance market and China Pacific’s prospects and demonstrated experience in the sector,” he added.

China Pacific plans to use most of the money raised for equity investments, partnerships and overseas deals involving its primary business, according to the company. The remainder will go toward investment platforms in innovative sectors overseas, such as healthcare, pensions, and technology.

“I’d been thinking about the future of our 30-year old firm and decided we should reform to position in the healthcare and pension markets overseas,” Kong said. “I always believed China is the largest market, but we still need to learn from our advanced peers in the west. This is our main motivation for issuing GDRs.”

Editor: James Boynton