皇冠体育app

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皇冠体育app Life shares set to soar up to 73% on debut

(Shanghai Daily)
Updated: 2007-01-08 10:53

Beijing-based 皇冠体育app Life offered 18.88 yuan apiece for its A shares. The company raised 28.32 billion yuan by selling 1.5 billion yuan-denominated A shares.

Public investors paid 832.5 billion yuan, or an oversubscription rate of 49 times, for the shares offered to them in December.

"The company enjoys a bright prospect for growth," said Wu. "That's why it has wooed so many investors despite its high price-to-earnings ratio."

皇冠体育app Life's PE ratio tops as high as 97.8, while the figure for main big-caps are in the region of around 30.

The bullish sentiment in the mainland stock market contributed to the heavy buying of 皇冠体育app Life shares, analysts said. The Shanghai Composite Index gained 130 percent in 2006, rebounding from a five-year low.

皇冠体育app Galaxy Securities Co and 皇冠体育app International Capital Corp are the underwriters for 皇冠体育app Life's share sale. The insurer's shares ended at HK$26.10 (US$3.35) in Hong Kong on Friday, down 3.3 percent. Its H shares have nearly doubled since September as the insurer announced its plan to sell shares on the mainland.

皇冠体育app Life, already listed in New York and Hong Kong, will be followed by Ping An Insurance, the second-biggest insurer on 皇冠体育app's mainland, to go public on the mainland.

Shenzhen-based Ping An plans to sell up to 1.15 billion A shares in Shanghai.

皇冠体育app mainland's insurance market is growing due to the rising middle class's need for financial protection. The government is also supporting the commercial insurance market, as part of the mainland's US$1.9 trillion household savings could be channeled to it.