PICC to seek 3.21 bln USD in IPO

The People's Insurance Company ( Group) of China Limited (PICC) Friday announced its proposed listing on the Main Board of the Stock Exchange of Hong Kong Limited, expecting it will be the biggest IPO in Hong Kong this year. According to PICC, the expected net proceeds from the global offering are approximately 24,879 million HK dollars (about 3.21 billion U.S. dollars) assuming an offer price of 3.73 HK dollars per H Share. "In all probability, it will be the biggest IPO in Hong Kong this year," said Li Yuquan, vice president of PICC. The leading large-scale integrated insurance financial group in China plans to issue nearly 6.9 billion H Shares (subject to the H Share Over-allotment Option). 95 percent of them will initially be offered in the international offering, and the remaining 5 percent will initially be offered in the Hong Kong public offering. The indicative offer price range is 3.42 HK dollars to 4.03 HK dollars per H Share. The Hong Kong public offering will commence on November 26 and is expected to close on November 29. Dealings on the Main Board of the Stock Exchange of Hong Kong Limited are expected to commence on December 7. The H Shares of PICC Group with the stock code of 1339 will be traded in board lot of 1,000 shares each. In connection with the global offering, Goldman Sachs is expected to act as the stabilizing manager. The net proceeds from the global offering are intended to be used for strengthening PICC's capital base to support its business growth. Founded in October 1949, PICC was the first nation-wide insurance company in China, ranking 292nd on the Global 500 (2012) published by Fortune magazine. (1 U.S. dollar equals to 7.75 HK dollars)