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PICC may aim to raise US$3b from IPO in HK
Source: Bloomberg News |
September 4, 2012, Tuesday
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Print Edition
Print Edition
PEOPLE'S Insurance Co (Group) of China may seek as much as US$3 billion in an initial public offering in Hong Kong in October or November while postponing a Shanghai listing, two people with knowledge of the matter said yesterday.
The state-owned insurer, which initially planned a dual listing in the two cities, may put the Shanghai portion of the sale on hold as the Chinese mainland's regulators have yet to approve the deal, said the sources, who asked not to be identified.
PICC had aimed to raise US$5 billion through the IPO in Hong Kong and Shanghai, people familiar with the deal said in May. That would have made it this year's third-biggest stock market debut after Facebook Inc and Japan Airlines Co, and the largest in Hong Kong since October 2010, data compiled by Bloomberg News show.
The Beijing-based company received approval from the Hong Kong stock exchange in June to sell shares in the city, according to the people. Chinese regulators may be slowing IPO approvals to avoid putting additional pressure on a stock market that's lost 19 percent in the past year, the sources said. PICC may still try to sell shares in Shanghai after listing in Hong Kong, they said.
Proceeds from the IPO may boost PICC Group's ability to inject more capital into its publicly traded unit, PICC Property & Casualty Co, which is China's biggest non-life insurer and contributes more than half of the parent company's profit.
PICC Group is ranked fifth in the country with life insurance premium income of 45.4 billion yuan (US$7.2 billion) in the first seven months of 2012, according to data on the website of China's insurance regulator.
The state-owned insurer, which initially planned a dual listing in the two cities, may put the Shanghai portion of the sale on hold as the Chinese mainland's regulators have yet to approve the deal, said the sources, who asked not to be identified.
PICC had aimed to raise US$5 billion through the IPO in Hong Kong and Shanghai, people familiar with the deal said in May. That would have made it this year's third-biggest stock market debut after Facebook Inc and Japan Airlines Co, and the largest in Hong Kong since October 2010, data compiled by Bloomberg News show.
The Beijing-based company received approval from the Hong Kong stock exchange in June to sell shares in the city, according to the people. Chinese regulators may be slowing IPO approvals to avoid putting additional pressure on a stock market that's lost 19 percent in the past year, the sources said. PICC may still try to sell shares in Shanghai after listing in Hong Kong, they said.
Proceeds from the IPO may boost PICC Group's ability to inject more capital into its publicly traded unit, PICC Property & Casualty Co, which is China's biggest non-life insurer and contributes more than half of the parent company's profit.
PICC Group is ranked fifth in the country with life insurance premium income of 45.4 billion yuan (US$7.2 billion) in the first seven months of 2012, according to data on the website of China's insurance regulator.
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