Insurer eyes funds via rights issue in HK and Shanghai
By Vera Ye |
May 22, 2013, Wednesday
|
Print Edition
Print Edition
CHINA'S largest non-life insurer PICC Property and Casualty Co is raising 5.76 billion yuan (US$944 million) via a rights issue in Shanghai and Hong Kong as it bids to bolster its balance sheet.
The insurer is offering 418 million H-shares on the Hong Kong stock market at HK$5.38 (69 US cents) per share and 930 million shares in Shanghai at 4.3 yuan per share, the state-controlled insurer said a filing to the Hong Kong stock exchange on Monday.
The rights issue is conducted on the basis of 1.1 new shares for every 10 existing shares held by the shareholders, according to the filing.
"The proceeds of the rights issue will primarily be used to strengthen the capital base of PICC Property and Casualty and to improve its solvency margin," the insurer said in the filing.
A report by Bank of America Merrill Lynch said the rights offer will improve PICC Property and Casualty's solvency adequacy ratio by 20 percentage points.
People's Insurance Company Group of China Ltd, the parent of PICC Property and Casualty, said on Monday it will contribute around 4 billion yuan for the subscription of allotted shares to keep its share holdings at 69 percent, according to a separate filing to the Hong Kong bourse.
American International Group Inc also has agreed to invest HK$718.1 million to retain its 9.9 percent stake in the insurer, it said on Monday.
The insurer is offering 418 million H-shares on the Hong Kong stock market at HK$5.38 (69 US cents) per share and 930 million shares in Shanghai at 4.3 yuan per share, the state-controlled insurer said a filing to the Hong Kong stock exchange on Monday.
The rights issue is conducted on the basis of 1.1 new shares for every 10 existing shares held by the shareholders, according to the filing.
"The proceeds of the rights issue will primarily be used to strengthen the capital base of PICC Property and Casualty and to improve its solvency margin," the insurer said in the filing.
A report by Bank of America Merrill Lynch said the rights offer will improve PICC Property and Casualty's solvency adequacy ratio by 20 percentage points.
People's Insurance Company Group of China Ltd, the parent of PICC Property and Casualty, said on Monday it will contribute around 4 billion yuan for the subscription of allotted shares to keep its share holdings at 69 percent, according to a separate filing to the Hong Kong bourse.
American International Group Inc also has agreed to invest HK$718.1 million to retain its 9.9 percent stake in the insurer, it said on Monday.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
