Stocks News
- Shanghai News
Date: 9-Jan-2007 Sources: (Xinhua Online)
China Life, the country's top life insurer, will have its first day of trading on the Shanghai Stock Exchange on Tuesday, becoming the first insurance company on the Renminbi-denominated A-share market.
Six hundred million A-shares will be allowed into circulation under the ticker code of 601628, according to latest company circular.
The company has raised 28.32 billion yuan (3.6 billion U.S. dollars) from its initial public offering of 1.5 billion A-shares.
The issue has expanded the company's total shareholding to 28.26 billion shares, diluting the net asset value per share to 3.37 yuan and earnings per share to 0.19 yuan.
China Life Insurance (Group) Company, the largest shareholder, holds 19.32 billion shares, about 68.37 percent of the total, said the circular.
Nineteen strategic investors shared 600 million shares, about 2.12 percent. Another 130 institutional investors acquired 1.06 percent or 300 million shares.
China Life priced its 1.5 billion A-shares at 18.88 yuan, and the price is expected to surge to 30 yuan on its first trading day. China Life is also expected to be the third heavyweight to list after the Industrial and Commercial Bank of China and the Bank of China.
Under a new regulation of the Shanghai Stock Exchange, China Life shares will not be included in the Shanghai Composite Index and other indices until it has been listed for 10 trading days.
China Life is already listed on the Hong Kong and New York stock exchanges. It has 44.1 percent of the country's insurance market.
Over the past five years, China's insurance sector saw annual growth of 35 percent on average.
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