State-owned re/insurer the People’s Insurance Company of China (PICC) has received approval from China’s securities regulator regarding an application for an initial public offering (IPO) on the Shanghai Stock Exchange.
PICC has applied to issue up to 4.6 billion shares on the Shanghai Stock Exchange, according the prospectus the company filed with the China Securities Regulatory Commission (CSRC).
This will be the first re/insurance IPO on the A-share market since 2011, and analysts expect it to raise at least ¥10 billion (about $1.6 billion) for PICC.
Last year, PICC recorded a net profit of approximately ¥16.1 billion ($2.5 billion), representing an increase of 13% year-on-year according the company’s annual report, which was filed on the Hong Kong Stock Exchange.
PICC, which is already listed in Hong Kong, will join a group of four other re/insurers that are listed in both Hong Kong and the domestic A-share market, including Ping An Insurance and China Life Insurance.