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PICC Group seeks secondary listing in Shanghai

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PICC Group seeks secondary listing in Shanghai

People's Insurance Co. (Group) of China Ltd., the Hong Kong-listed parent of China's biggest property and casualty insurer, is seeking a secondary listing on the Shanghai stock exchange to replenish its capital.

PICC Group, whose PICC Property & Casualty Co. Ltd. unit is also listed on the Hong Kong exchange, posted an IPO prospectus on the China Securities Regulatory Commission's website April 9. The company plans to issue up to 4.60 billion new A-shares, or 9.78% of its enlarged share capital.

The prospectus did not say when the new shares will start trading, and a PICC Group investor relations manager said the listing date will be subject to further review by the securities regulator, as well as market conditions.

"If the financial market does not do well, we may postpone the listing," the manager said, declining to specify how much the group plans to raise from the IPO.

At PICC Group's earnings press conference March 26 in Hong Kong, Chairman Miao Jianmin told S&P Global Market Intelligence that "PICC Group ... is larger than others, so the listing window is important."

If the overallotment option is not exercised, the Chinese finance ministry's stake in PICC Group would drop to 63.58% from 70.47%, while the stake held by the country's Social Security Fund would drop to 9.20% from 10.20%, the prospectus said.

The company had net assets per share of 3.23 yuan at the end of 2017. PICC Group's Hong Kong-listed shares closed at HK$3.67 apiece April 9.

PICC Group reported full-year 2017 net profit attributable to equity holders of 16.65 billion yuan, up 16.1% year over year, as gross written premium rose 8.3% to 476.45 billion yuan.

The group has subsidiaries in P&C, life insurance, health insurance, reinsurance, annuity insurance and asset management. PICC Group and its subsidiaries also hold a 12.9% stake in Industrial Bank Co. Ltd. and a 19.99% stake in Hua Xia Bank Co. Ltd.

China International Capital Corp. Ltd. and Essence Securities will be the lead sponsors of the deal, while CITIC Securities Co. Ltd. and Goldman Sachs Gao Hua Securities will serve as joint lead sponsors.

As of April 9, US$1 was equivalent to 6.31 Chinese yuan.