China-based ZhongAn On-line P & C Insurance coverage has accomplished its H share placement, elevating gross proceeds of roughly HK$3.92bn ($500m).
The transaction marks the primary occasion of fairness financing for the corporate since its preliminary public providing in 2017.
The position concerned the issuance of 215 million new H shares at a value of HK$18.25 per share, accounting for almost 12.76% of the its enlarged share capital following the location.
The online proceeds from this fairness financing are meant to drive the corporate’s enterprise growth initiatives.
Particularly, 60% of the funds will likely be allotted to the corporate’s core insurance coverage underwriting and asset administration operations, with one other 30% for funding in fintech improvements.
The remaining 10% will likely be directed in the direction of common company functions.
ZhongAn board of administrators said: “This profitable placement is a transformative step in ZhongAn’s evolution. The capital infusion empowers our dual-engine technique—driving core insurance coverage progress whereas scaling technology-driven options.
“By way of disciplined deployment, we’ll additional unlock synergies on the intersection of finance and expertise, delivering sustainable worth to stakeholders.”
ZhongAn is acknowledged as an “internet-based” InsurTech firm in China, using a “Insurance coverage + Know-how” technique, enhancing its underwriting, distribution, and customer support capabilities.
It was established in 2013, and subsequently listed on the Hong Kong Inventory Trade in 2017.
As of mid-2023, ZhongAn has reportedly served over 500 million customers and issued roughly 57.4 billion insurance coverage insurance policies.
Moreover, the corporate operates in Southeast Asia, East Asia, and Europe, and spanning sectors reminiscent of banking, insurance coverage, securities, high-end manufacturing, and Web platforms.
“ZhongAn On-line raises HK$3.92bn in post-IPO fairness financing ” was initially created and revealed by Life Insurance coverage Worldwide, a GlobalData owned model.
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