Ping An Insurance (Group) Co., China's second-biggest insurer, may raise as much as HK$32 billion ($4.1 billion) in a stock sale, part of a plan to offer a wider range of financial services.

The board approved the domestic offering of as many as 1.15 billion of new shares, representing 15.7 percent of its enlarged capital. It didn't give any price range. The sale could reach HK$32 billion based on yesterday's close of HK$27.80 of its Hong Kong stock.

Ping An is seeking to build an integrated financial services group that will garner two-thirds of revenue from outside of insurance within 10 years. The company, 19.9 percent held by HSBC Holdings Plc, aims to expand its banking and asset management units, which generate less than 10 percent of total revenue.

Ping An will use the proceeds from the sale to replenish capital. The plan is subject to the approval of shareholders and Chinese regulators.

China Life Insurance Co., the nation's biggest insurer, said last month it will apply to sell 1.5 billion of new shares in Shanghai. The nation's stock exchanges in Shanghai and Shenzhen don't have any insurance stocks. The three biggest insurers, including No. 3 PICC Property & Casualty Co., are all publicly traded in Hong Kong.

Chinese insurers are looking for capital to marry insurance and banking as regulators encourage the companies to offer more diversified services. Ping An in July agreed to buy Shenzhen Commercial Bank for 4.9 billion yuan.

Earlier this year Ping An is prepared to raise funds by selling bonds or new shares to make acquisitions.

Source:佚名