The issuer is planning to sell almost seven billion new shares, which represents about 17 percent of the companys enlarged share capital. 95 percent of those shares will be offered to institutional investors while the remainder will be made available to retail investors in Hong Kong. Proceeds from the offering will be used to strengthen the companys capital and support business growth.
PICC has life insurance, health insurance and asset management units. It also has a Hong Kong unitPICC Property and Casualty Co. Ltd.
The offering, if successful, will be the largest Hong Kong IPO by a mainland Chinese company since 2010 and could mark a revival of capital markets activity in the Asian financial capital, which led the world in IPOs from 2009 through 2011. According to Dealogic, new listings in Hong Kong have raised $6.2 billion this year, the lowest amount since 2003.
Davis Polk Beijing partner Li He and Hong Kong partner Antony Dapiran are leading the firms team advising PICC on Hong Kong and U.S. law. King & Wood Mallesons Beijing partners Yang Xiaolei and Su Zheng are acting for the issuer on Chinese law.
Slaughter and May is representing underwriters including China International Capital Corp., Credit Suisse Group, Goldman Sachs Group Inc and HSBC Holdings Plc.