According to reports released by the IFR on Friday, Chinese Internet based insurer Zhong An, who deals in insurance purely on its online platform intends to accumulate up-to-$2 billion through its initial public offering in mainland China this year.
An analysis of data from Thomson Reuters has highlighted that the $2 billion deal may beat the record set by brokerage Guotai Junan Securities Co last year who raised $4.8 billion, making this IPO the largest-ever technology-related listing in mainland China and biggest IPO since last June.
The country’s first and only online insurer has called upon banks to bid for IPO roles. The company was established in 2013 by three chairmen, namely Jack Ma of Alibaba Group Holding Ltd, Pony Ma of Tencent Holdings Ltd, Ma Mingzhe of Ping An Insurance Group Co of China Ltd.
The report by the IFR also indicates that Zhong An aims to be listed this year, adding to the ream of firms in the finance and technology industry with a similar dream this year with the inclusion of virtual lending avenues such as Lufax and Alibaba’s Internet finance affiliate Ant Financial Services Group.
In June, the previous year, Zhong An received investment totalling $931 million from a cluster of investors, making the company’s worth to be estimated at $8 billion. The investors included China’s first ranked investment bank, China International Capital Corp, Morgan Stanley and other private equity companies.
The past couple of months have been turbulent for Chinese stock markets, which led the government to suspend a number of listings in June in a bid to steady the market. As time has gone on, the government has gradually begun to allow new IPOs again. So far the China Securities Regulatory Commission approved nine similar offerings on Tuesday, despite the fact that the market’s volatility is still indeterminable.
The People’s Bank of China in January put more than $198 billion into the financial system, amidst liquidity deficiencies that followed an abrupt drop in stock markets which triggered the “circuit breaker” system which suspended trading during the opening week of the year. The country is also battling a decline in household consumption by attempting to weaken the yuan in a bid to stimulate the export market.
The company registered net profits of $4.1 million in 2014, its dominant shareholder being the financial-services affiliate of Alibaba, at an ownership percentage of 16 points. Ping An, the insurance company, and Tencent each own a 12 percent shareholding.