China Taiping Insurance Plans to Raise $1.7 Billion in Private Share Sale

By Regina Tan | May 7, 2015

China Taiping Insurance Holdings Co. plans to raise HK$13.5 billion ($1.7 billion) in a private share sale after its stock price more than doubled in the past year.

The insurer will sell 486 million shares at HK$27.74 a piece, representing 13.5 percent of the share capital after the placement, according to a statement posted to the Hong Kong stock exchange. The stock closed at HK$29.20 on May 4, ahead of a trading suspension that ended on Wednesday.

Taiping is the latest Chinese company to tap equity markets for funds after stock rallies in Shanghai and Hong Kong. Companies listed in China have announced more than $82 billion of secondary offerings this year, with UBS Group AG estimating that will surge to a record $161 billion.

“In light of the market conditions, the placing and subscription will raise additional capital for the group for its business development,” Taiping said in its statement.

The transaction will take place in two steps, with its parent selling shares to at least six investors, and then the insurer selling the same number of shares to its parent.

The placing agents are HSBC Holdings plc, Citigroup Inc., UBS AG and CCB International Capital Ltd.

–With assistance from Janet Ong in Hong Kong.

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