Ping An Insurance (Group) Co. of China Ltd., China's second-largest life insurer, said it plans to sell as many as 1.15 billion Class A shares in an initial public offering in mainland China, which could raise as much as US$4.2 billion and make Ping An the latest in a string of Chinese companies seeking local listings.

The Shenzhen-based, Hong Kong-listed insurer said in a statement it will seek a listing on the Shanghai Stock Exchange and hold an extraordinary general meeting in November to seek shareholders' approval for the plan.

Ping An said its proposed IPO of Class A shares would take place next year, subject to approval of shareholders, the Shanghai Stock Exchange and other mainland China government agencies, including the China Securities Regulatory Commission. Class A shares are yuan-denominated shares traded on mainland exchanges by domestic and approved foreign investors.

The Chinese insurer said the proceeds from the IPO would replenish the company's capital.

The proposed Class A shares would represent 15.7% of the company's enlarged capital.

Ping An's Class H shares, which are shares of mainland-based companies traded in Hong Kong, rose 2.9% to 28.60 Hong Kong dollars (US$3.67) yesterday, up 80 Hong Kong cents.

Based on that closing price, Ping An's IPO of Class A shares would be much larger than rival China Life Insurance Co.'s plan to raise an estimated US$2.7 billion through an IPO of as many as 1.5 billion Class A shares. Both IPOs will be priced by market conditions prevailing at the time of the issue.

Hong Kong-listed China Life, China's largest insurer by premiums, said in August that its plan is also subject to the approval of mainland China authorities and its shareholders.

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