China Re Said Poised to Raise $2 Billion From Hong Kong IPO

China Reinsurance Group Corp., the nation’s biggest reinsurer, is set to raise $2 billion from an initial public offering in Hong Kong, people with knowledge of the matter said.

The Beijing-based company plans to sell 5.77 billion shares at HK$2.70 apiece, the top end of a marketed range, said the people, who asked not to be identified because the information is private. The shares were offered at HK$2.25 to HK$2.70 each, according to the reinsurer’s IPO prospectus.

China Re is raising funds to bolster its capital base as Hong Kong’s IPO market recovers from a slow third quarter. With the reinsurer’s deal done, the value of first-time sales in the city has jumped 28 percent this year to $23 billion, according to data compiled by Bloomberg.

There were $2.8 billion of such offerings in Hong Kong from July through September, down 50 percent from the third quarter of last year, the data show.

U.S.-based Prudential Financial Inc., China Life Insurance Co. and Macau casino executive Pansy Ho are among 15 cornerstone investors that will buy a combined $1.12 billion of shares in the offering, according to the prospectus. China International Capital Corp., HSBC Holdings Plc and UBS Group AG are joint sponsors of the IPO.

A Hong Kong-based external spokesman for China Re declined to comment by phone.

Reuters reported the final pricing earlier, citing unidentified people.

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