Reinsurance News

CPIC to pursue London listing with Swiss Re as cornerstone investor: reports

3rd June 2020 - Author: Luke Gallin

Reports have emerged claiming that China Pacific Insurance Company (CPIC) is moving forward with a London listing to support its overseas expansion, with global reinsurance giant Swiss Re serving as its cornerstone investor.

Swiss ReIn November of last year, Swiss Re confirmed that it was exploring an investment opportunity with CPIC following a partnership with the insurer earlier in the year. At the time, it was reported that this investment opportunity could involve a primary offering of CPIC’s securities.

CPIC, which is listed in both Hong Kong and Shanghai, said in September that it planned to sell global depository receipts (GDR) and list them on the London Stock Exchange.

Since then, market conditions have deteriorated somewhat as the COVID-19 pandemic intensified, but according to Reuters, the Chinese insurer is set to go ahead with a London listing under a stock link scheme between Britain and China.

Announced in 2018, the Shanghai-London Stock Connect Scheme enables Chinese firms to add a secondary GDR listing in Britain, although just one has come to fruition so far amid challenging market conditions.

Stratumn, by SIA Partners

CPIC, which has received approval from the country’s securities regulator to sell GDRs in London, is looking to raise funds to support its overseas expansion efforts and will reportedly issue 125.7 million units of GDRs in London, with Swiss Re serving as its cornerstone investor.

It’s believed that the London listing could raise as much as $2.5 billion.

Reportedly, the Switzerland-based reinsurer will assume a GDR share of up to 1.5% of the Chinese insurer’s total number of ordinary shares, with a lock-up period of three-years.

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