PING AN IPO PRICED AT BETWEEN 33.1 AND 33.8 YUAN

China-based insurer Ping An begins its online roadshow this afternoon having announced that the shares of its IPO would be priced at between 31.8 and 33.8 yuan each. About 1.15bn of the ‘A’-listed domestic shares are to be issued, accounting for 15.66% of the company’s expanded stock issue. Strategic investors begin their subscriptions today, with retail investors having to wait until Monday. The final price will be set on Tuesday. Ping An's A-listed shares will be sold at a maximum 17% discount to the latest Hong Kong closing price, compared with a 20% discount announced by China Life in its recent Shanghai listing. This has since turned into a 30% premium to the Hong Kong price. Ping An could raise up to nearly 39bn yuan as a result of the issue. It will use the funds to raise capitalisation and to invest in other operations approved by the regulators. HSBC will likely see its 20% stake in Ping An, of which it bought a 10% stake for less than 5bn yuan, be worth more than three times its initial investment.