New China Life may seek $1.6bn HK IPO

New China Life Insurance (2628.HKG) may seek to raise up to US$1.6 billion in the Hong Kong portion of its initial public offering, which is scheduled for mid-December, Bloomberg reported, quoting two people familiar with the matter. The insurer, which is backed by Zurich Financial Services (ZURN.VTX), is expected to offer about 358 million shares at US$3.62 to US$4.40 apiece and will sell more in an overallotment option if there is enough demand, the people said. In addition to the Hong Kong offering, New China Life plans to issue up to 158.5 million shares in Shanghai, potentially bringing proceeds from both offerings to US$3 billion. China’s major insurers have seen their capital base eroded this year due to a combination of rising policy claims and sluggish stock markets, where much of their holdings are invested.