The state controlled insurance firm PICC Property and Casualty Co Ltd announced last Monday that is preparing for a planned right issue of shares in both Shanghai and Hong Kong bourses. With the sale, it is expected that the firm would be able to raise a combined 5.76 billion yuan or US$938.28 million for the purpose of strengthening its capital base and improving its solvency margin.
The firm is also planning to offer 930 million shares of stock in the domestic currency A-share market of Shanghai. In this offer, it would price each share at 4.3 yuan or US$0.70 per share as well as 418 million H-shares on the Hong Kong stock market at HK$5.38 per share. The numbers were confirmed through a regulatory filing with the Hong Kong stock exchange.
The share prices at the Hong Kong bourse closed at HK$10.20, an increase of 1.2%.
PICC has engaged the services of CICC, Goldman Sachs and HSBC as joint lead bookrunners and underwriters for the offer.
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