China Pacific Insurance to raise £1.70 billion via its London-listing

Written by: Wajeeh Khan
June 12, 2020
  • China Pacific Insurance to raise £1.70 billion via its London-listing.
  • The company aims at selling more than 113 million GDRs.
  • China Pacific Insurance to start trading on 17th June.

China Pacific Insurance Company hopes to raise about £1.70 billion via a London-listing that it launched on Friday. The listing restarts the scheme between the United Kingdom and China to build investment links that was delayed in recent months due to the Coronavirus pandemic that has so far infected more than 7.6 million people worldwide and caused over 424,500 deaths.

According to CPIC, it aims at selling more than 113 million GDRs (global depositary receipts) at a price of £14.04 to £15.15 per share. The figure also includes the additional shares that the insurance company will be able to put on sale as it taps on the greenshoe option.

China Pacific Insurance to start trading on 17th June

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The listing, as per China Pacific Insurance, represents roughly 9% of its share capital in Shanghai. CPIC also said that each of the offered GDR will be equal to five of its class-A shares.

The Chinese company also highlighted on Friday that pricing for its London-listing is expected on 16th June, and it will be available for the public to trade on Wednesday.

As part of the Shanghai-London Stock Connect programme, Swiss Reinsurance Company Ltd. has pledged to purchase 28.9 million GDRs of the China Pacific Insurance. The Stock Connect scheme is primarily aimed at helping Chinese firms broaden their investor base.

The Stock Connect programme was initially launched in 2018 and was expected to see participation from a range of companies. So far, however, Huatai Securities is the only Chinese company that has penetrated into London. The company launched its London-listing last year in June.

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CPIC records a 3.43% growth in original premium income

China Pacific Insurance said in May that in the first 4 months of 2020, it recorded a year over year growth of 3.43% in original premium income. The insurer also highlighted an increase in revenue to £17.25 billion.

In 2019, CPIC saw an 8% increase in revenue from insurance businesses. In terms of profit attributable to shareholders, it reported a 54% year over year increase.

In separate news, also launched its secondary listing in Hong Kong on Thursday that raised a total of £3.04 billion. The company sold 133 million shares at a per-share price of £23. Marking the second-largest listing in Hong Kong this year, is expected to be open for public to trade on 18th June.