The world's first ever insurtech IPO has raised $1.5bn

 
Alys Key
Follow Alys
Industrial and Commercial Bank Of China Makes Hong Kong Trading Debut
Source: Getty

The world's first float of an insurance technology (insurtech) firm has raised US $1.5bn (£1.1bn).

Monday's IPO of ZhongAn Online Property & Casualty Insurance has been priced at the top of its indicated range at HK $59.70, sources told the Financial Times.

The public offering of the online-only group marks the world's first float of an insurtech firm. It was also the biggest Hong Kong IPO since last year's $1.9bn listing of pharma group China Resources.

This also made ZhongAn's listing the biggest financial technology offering in the Hong Kong market's history.

Read more: Insurtech set to put whopping dent into insurance sales

Plans for expansion off the back of the listing include tapping into new areas. The group already offers online insurance products covering a range of issues including accident, credit, and household property.

But chief financial officer Francis Tang said it plans to add life insurance and healthcare to push further growth.

Founded by a host of big names in the Chinese business world, including Alibaba's Jack Ma, ZhongAn already has some major backers.

Japan's SoftBank pledged $550m for a five per cent stake as part of the IPO. Alibaba-affiliated Ant Financial is the company's largest shareholder.

Reuters has previously reported that Ant Financial is considering its own float in Hong Kong.

The insurtech sector is also booming in the UK, as investment continues to increase.

Read more: FCA strikes fintech agreement with Hong Kong authorities

Related articles