Sunshine’s US$824 million IPO a boost for Hong Kong even as Beijing insurer prices stock offering at lower end of range

Sunshine sells 1.15 billion shares at the bottom of the price range it marketed to investors

International institutional investors show greater interest in the offering than local retail investors

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Sunshine Insurance’s net profit rose 6 per cent to 6.02 billion yuan last year. Photo: Weibo

Published: 2:25pm, 8 Dec 2022

Beijing-based insurer Sunshine Insurance has priced its initial public offering (IPO) at HK$5.83 per share with the aim of raising HK$6.42 billion (US$824 million).

The IPO, which is also a boost for the city’s ambitions of becoming an insurance fundraising centre, is the city’s fourth-largest new listing this year based on Refinitiv data.

Sunshine priced 1.15 billion new shares in the IPO at the bottom of the HK$5.83-HK$6.45 range it marketed to investors when the deal was launched on November 30, according to a company filing with the stock exchange.

“There are already a lot of large insurance companies listed in Hong Kong, which means investors have a lot of choice in this sector. Sunshine Insurance will face keen competition from its peers,” said Louis Tse Ming-kwong, managing director at Wealthy Securities.

The insurer will be the 18th such firm to list in Hong Kong. Sunshine’s IPO, however, underscores Hong Kong’s push for more mainland Chinese and international insurers to set up in the city. John Lee Ka-chiu, the city’s leader, on Monday unveiled a road map for developing the local insurance industry with the aim of turning Hong Kong into a risk management hub.