ZhongAn, a China-based online insurance platform backed by corporate investors Alibaba, Tencent and Ping An, has received approval from the Hong Kong stock exchange for an initial public offering, Reuters reported on Friday.
The company expects to raise more than $1bn through the IPO, according to sources with direct knowledge of the deal. A report last month suggested ZhongAn would aim to secure as much as $1.5bn through the offering.
ZhongAn provides property and casualty insurance to customers through an online offering that includes up to 300 different packages. The company specialises in insurance products that cover the return of goods that have been bought online.
The company was founded in 2013 by Ant Financial, the financial services affiliate of e-commerce conglomerate Alibaba, which currently holds a 16% stake in the business, together with internet company Tencent and insurance group Ping An, which each own 12.1% stakes.
Investment banking firms Morgan Stanley and China International Capital, and asset management firms CDH Investments and Keywise Capital Management all participated in a $934m round for ZhongAn in 2015 which was closed at an $8bn valuation.
The proposed offering is expected to launch next week, and an earlier report suggested ZhongAn will issue shares worth between 5% and 10% of its overall shareholding through the IPO.