HONG KONG (Reuters) – Chinese state-owned insurer PICC Group has secured pledges from American International Group (AIG) and other investors to buy about half of its up to $3.6 billion IPO, set to be the biggest in Hong Kong in two years.
The long-awaited offering is set to be priced on Nov. 30. Underwriters have revised down the company valuation and the IPO size, sources with direct knowledge of the deal said, underscoring the tough environment for fundraising and PICC's need to boost its capital base to support business growth.
People's Insurance Company (Group) of China (PICC), one of China's largest insurers, is tapping the Hong Kong equity market at a time when IPO volumes in the financial centre have tumbled more than 80 percent. PICC will be the biggest Hong Kong IPO since another insurer, AIA Group Ltd, raised $20.5 billion in 2010.
The company secured $1.85 billion in commitments from 17 cornerstone investors as varied as Chinese utility State Grid Corp, the country's leading gold miner Zijin Mining Group, defence contractor Spacechina and China Life Insurance Co Ltd , the sources said.
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