(Yicai Global) June 6 -- The Issuance Examination Commission yesterday passed the initial public offering application of the People's Insurance Company (Group) of China, as the China Securities Regulatory Commission (CSRC) announced on its website.

As the PICC was set to undergo CSRC review on June 4 its People's Insurance Company (Group) of China Ltd. H-shares [HKG:1339] surged about 9 percent, and shares of its separately-listed unit PICC Property and Casualty Company Ltd. [HKG:2328] also rose over 3 percent.

The company plans to issue 4.599 billion shares on the Shanghai Stock Exchange, or up to 9.78 percent of its general capital post-IPO, its prospectus shows. Proceeds will replenish the company's capital fund. It ranks eighth in volume of shares in the history of the A-share market and its issue is the largest in eight years.

PICC's potential fundraising amount from the A-share IPO will top CNY15 billion (USD2.35 billion), as calculated based on its CNY3.23 net asset per share. The valuation of A-shares is usually higher than H-shares, so the funding raised may go even higher.

PICC is an established Chinese insurance company. Its predecessor the People's Insurance Company of China formed in 1949, and it is now among the country's five largest insurers with an asset value topping CNY1 trillion. Its business scope has extended from its original insurance and asset management to such non-insurance financial fields as trusts and funds.

Editor: Ben Armour