New China Life block fetches $280m

An undisclosed shareholder raised $280.4 million in a secondary share sale of New China Life Insurance on Tuesday night after offloading shares towards the bottom of the indicative price range.

The share sale follows a run-up in the mainland insurance company's shares as investors are keen to cash in on the gains in Chinese companies listed in Hong Kong.

UBS launched the 34.6 million-share offering Tuesday at an indicative price range between HK$49.60 to HK$50.35 per unit, representing a 3.5% to 2% discount to the May 19 closing price of HK$51.40, according to a term sheet seen by FinanceAsia. Shares were sold in board lots of 100, the term sheet said.

Shares priced at HK$49.85 per unit, allowing the seller to raise $280.4 million from the secondary sell-down. Books were multiple times covered, although allocations were still being sorted late Tuesday night in Hong Kong.

Shares in New China Life are up 31.3% year-to-date, with most of the gains coming since the end of March. Shares jumped 28.2% from March 27 up to May 19. They have been on a downward slide since May 11, however, retreating 3.6% up to May 19.