PICC in China’s first insurance company rights issue

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PICC in China’s first insurance company rights issue

China’s largest property insurer, PICC Property & Casualty Company, recently became the first PRC-incorporated company listed on the Main Board of the Hong Kong Stock Exchange to complete simultaneous domestic share and H-share rights issues. This was also the first H-share rights issue by a Chinese insurance company.

PICC raised approximately US$788 million through the rights issues. The proceeds will be used to strengthen its capital base and improve its solvency margin.

The underwriters were CICC, HSBC and Goldman Sachs. International law firm Freshfields Bruckhaus Deringer advised on both the domestic and H-share rights issues. Its global capital markets team was led by partners Richard Wang (Hong Kong law) and Calvin Lai (US law). The deal team included associates Constance Chou, Li Zhiyao and Xu Feifei as well as legal consultant Jenny Yin.