CNinsure plans to raise $102M in IPO

CNinsure plans to raise $102M in IPO

	Published : Thu, 18 Oct 2007 17:50 By : Agencies Print this Story

NEW YORK (AP) - Chinese independent insurance agency and brokerage CNinsure Inc. said Thursday it plans to raise about $102 million from an initial public offering of 11.6 million American Depositary shares, according to a regulatory filing.

In a filing with the Securities and Exchange Commission, the company said each ADS represents 20 ordinary shares. CNinsure plans to offer 9.65 million ADSs, while a group of selling shareholders will offer about 2 million ADSs.

CNinsure has also granted the underwriters the option to buy up to an additional 1.7 million ADSs to cover any overallotments.

CNinsure expects the offering to price between $11 and $13 per ADS.

The company filed a preliminary prospectus with the SEC last week, but did not disclose any terms.

Assuming an offering price of $12 per ADS, CNinsure anticipates proceeds of about $101.7 million, or $121.2 million if the underwriters exercise their overallotment option in full.

CNinsure plans to use proceeds from the offering to fund acquisitions and establish joint ventures in an effort to enter new geographical markets and expand its products and services. The company also plans to use the proceeds to upgrade its information technology infrastructure, expand its call centers, establish Internet-based sales operations and for working capital.

CNinsure distributes insurance products underwritten by domestic and foreign insurance companies operating in China, and provides certain insurance-related services such as damage assessment from 170 locations in eight provinces throughout China. The company began by offering auto insurance products and eventually expanded its offerings to include other property and casualty insurance products. In January 2006, the company began offering individual life insurance products.

For the six months ended June 30, the company reported income of $7.7 million on revenue of $22.7 million.

Morgan Stanley is listed as the lead manager of the offering. William Blair & Co., Fox-Pitt Kelton Cochran Caronia Waller and Piper Jaffray are also listed as underwriters.

The company has applied to list its ADSs on the Nasdaq Global Market under the symbol 'CISG.'