China Pacific Insurance, one of the country’s top insurers, could net up to RMB30 billion (US$4.08 billion) from its initial public offering on the Shanghai Stock Exchange.

The price range of its A-share IPO was set at RMB27-30 after a road show that ran from December 7-11 in Beijing, Shanghai, and the southern cities of Shenzhen and Guangzhou.

On the day it was launched it reached the high end of the forecast — RMB30.

The price range translated into a price-to-earnings ratio of 28.06 to 31.18 times. All proceeds from the IPO will be used to increase CPIC’s capital to boost its growth.

An analyst from China Life, who asked not to be identified, said, ‘Demand for the one billion shares was strong amid positive earnings expectations and growth potential for the insurer, because the domestic insurance market is expanding quickly and CPIC has a good sales team and network.’

Analysts have said the shares could rise above RMB50 on their first day of trade on December 25. Which would mean a merry Christmas for the shareholders who got in on the ground floor.

Source: People’s Daily Online