China Reinsurance Plans RMB 3 Billion Domestic Share Placement To Finance Ministry

China Reinsurance (01508) said it plans to issue up to about 2.255 billion domestic shares at RMB 1.33 each to the Ministry of Finance, raising no more than RMB 3 billion, according to ETNet. The company said net proceeds will be used entirely to boost its core tier-1 capital after deducting issuance costs. The new domestic shares will be subject to a five-year lock-up period, and the Ministry of Finance's stake will rise from 11.45% to 15.91%. The placement still needs shareholder approval and a registration approval decision from the China Securities Regulatory Commission. After completion, public holdings of H shares are expected to fall to about 14.93% of total issued shares, below the initial threshold, so the company said it will use an alternative threshold under Listing Rule 19A.28B(1)(b) to meet continuing public float requirements.