AIG, others to take up half of China PICC's $4.4b IPO
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 US$3.6 billion (S$4.4 billion) initial public offering (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 fund-raising and PICC's need to boost its capital base to support business growth.
The 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 per cent. It will be the biggest Hong Kong IPO since another insurer, AIA Group, raised US$20.5 billion in 2010.