(Yicai Global) June 6 -- The Issuance Examination Commsion yesterday passed the initial public offering application of the People's Insurance Company (Group) of China, as the China Securities Regulatory Commsion (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-lted unit PICC Property and Casualty Company Ltd. [HKG:2328] also rose over 3 percent.
The company plans to sue 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 replenh the company's capital fund. It ranks eighth in volume of shares in the htory of the A-share market and its sue the largest in eight years.
PICC's potential fundraing 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 usually higher than H-shares, so the funding raed may go even higher.
PICC an establhed Chinese insurance company. Its predecessor the People's Insurance Company of China formed in 1949, and it 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