THE securities regulator has approved an application for an initial public offering (IPO) by People’s Insurance Group of China (PICC), Xinhua reported yesterday.

The company, which owns the nation’s biggest non-life insurer, applied to issue up to 4.6 billion shares on the Shanghai Stock Exchange, according to the company’s prospectus filed with the China Securities Regulatory Commission (CSRC).

The insurer is expected to raise at least 10 billion yuan (US$1.6 billion) from its Shanghai listing to replenish capital.

PICC will become the fifth mainland insurer to be listed in both Hong Kong and a domestic stock exchange, joining the ranks of China Life Insurance Co., Ping An Insurance Group of China, China Pacific Insurance Group and New China Life Insurance Co. The five companies are the largest insurers in the country.

PICC’s listing in Shanghai would come more than four years after the company went public in a US$3.1 billion offering in Hong Kong. PICC is the parent of PICC Property and Casualty Co.

PICC has been planning a domestic listing for a number of years, according to people familiar with the group’s strategy. However, changes in China’s listing rules and temporary suspensions of IPOs after turbulence in China’s stock market had delayed the plan.

“The domestic stock market has stabilized since last year. It is a good time to return to the A-share market now,” said one of the people.

PICC’s net profit attributable to equity holders last year stood at about 16.1 billion yuan, up 13 percent year on year, according to the annual report. (SD-Agencies)