Zhong An to sell up to 10% stake to investorsMarch 8 2017 by InsuranceAsia News Staff
Zhong An Online Property and Casualty Insurance, China’s first internet-only insurer, reportedly intends to sell a 5% to 10% stake to strategic investors to raise up to Rmb10 billion (US$1.45 billion) before its planned initial public offering (IPO) in mainland China.
At present, Zhong An’s major shareholders include two of China’s largest internet companies — Alibaba Group’s Ant Financial affiliate, which holds a 16% stake, and Tencent Holdings, with 12%.
The two companies have reportedly opened communication lines with potential investors, according to the sources.
Once the funds are secured, Zhong will use it to expand its business, as well as buy time before obtaining approval for its IPO whose valuation has yet to be finalised.
A Zhong An representative said the company offers more than 300 insurance products and has written more than 7.56 billion policies for more than 535 million customers to date.
- May 11
The Hong Kong-listed insurer co-led the funding round in a Tencent-backed Chinese online healthcare solutions platform.
- May 2
True North and its global sponsors have made a rumoured US$400m bid for a 40% stake.
- April 30
The Swiss insurer may opt to comply with 30% local ownership rule through an initial public offering.
- April 20
The rumoured sale is estimated by some analysts to be worth at least US$1 billion but remains unconfirmed.