PICC Group approved for $3bn IPO

Chinese state-owned insurer PICC has received approval from the Hong Kong Stock Exchange to proceed with a planned US$3 billion IPO, Reuters reported, citing an anonymous source. PICC has not stated when it plans to begin selling shares, and volatile markets may delay the insurer from offering shares soon, the source said. The Hong Kong IPO is part of a dual listing in Hong Kong and Shanghai that could raise up to US$6 billion, making it Asia’s biggest-ever offering. The offering will help PICC to inject cash into its subsidiary PICC Property & Casualty (2328.HKG) at a time when many insurers are seeking to boost capital adequacy ratios to meet regulatory requirements. PICC has tapped 17 banks that could work on the Hong Kong offering. IPO deal volume on the Hong Kong bourse is down 85% for the first five months of the year.