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China Taiping Insurance Holding Co. to Raise $1.7 billion by Offering Shares

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Published on : May 07, 2015

The leading insurance company in China, the Taiping Insurance Holding Co, is gearing up to raise US$1.7 billion from the sale of private share. The decision came in after the stock prices of the company doubled in the previous year. 

The Chinese insurer is planning to sell 13.5 per cent of the company’s share capital, which will account for a total of 486 million shares for HK$27.24 per share after the placement. The news of China Taiping Insurance Holding Co planning to sell shares was revealed in a statement posted to the Hong Kong stock exchange. On May 04, 2015, the stock exchange closed at HK$29.90, ahead of trading suspensions slated to end on Thursday. 

Taiping is the latest company in China, who are focusing to tap on the resources of equity market to generate funds, after stock rallies in Hong Kong and Shanghai. Listed companies in China have come together to announce secondary offerings in the country. The total secondary offering by these companies is expected to account for more than US$82 billion. Among the list of companies, UBS Group AG is likely to register a record of $161 billion. 

Speaking about their decision of offering their company shares in the market, a spokesperson from the company said that the decision was taken to capitalize on the present market conditions, which is highly favorable for placing subscriptions to raise good capital for the business development of the group. 

As per reports, the transaction will be segregated in two distinct steps. First parent will sell shares to at least six of the investors, and then insurers will sell same amount of shares to the parents. 

Companies such as Citigroup Inc., HSBC Holdings Plc, CCB International Capital Ltd, and UBS AG are announced as the placing agents. 

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