Insurer China Life has announced plans to issue up to 1.5 billion A-shares on the Shanghai Stock Exchange in order to raise funds to replenish capital.
The shares will be issued to strategic investors, securities funds and other institutional and public investors, the Hong Kong-listed insurer said. However, the actual size of the issue will be subject to the approval of the China Securities Regulatory Commission.
China Life will see the portion of its H-shares in the company’s shareholding structure diluted to 26.3% from 27.8% following the issue. The proposed A-share issue will represent about 5.3% of the company’s enlarged shareholding.
The company also reported a 72% rise in net profit to CNY8.97 billion for the first half to June.