泛华

泛华保险开盘首日股价节节攀升

© 2007 The Associated Press

NEW YORK — The American Depositary Shares of CNinsure Inc. jumped more than 60 percent in their market debut Wednesday, after the Chinese insurance agency and brokerage's initial public offering priced above the expected range.

The ADS gained $9.65, or 60.3 percent, to reach $25.65 in morning trading, after pricing at $16 per ADS. The stock hit a low of $23.37 and a high of $28.74 earlier in the session.

On Tuesday, the company increased the offering's expected price range to between $13 and $15 per ADS from the previous range of $11 to $13 per ADS.

Also Tuesday, a group of selling shareholders raised the number of ADS they planned to offer to 2.1 million from about 2 million. That boosted the total offering to about 11.8 million ADS. Each ADS represents 20 ordinary shares.

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 the country. 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.

Analysts had expected CNinsure to be one of the week's premier deals.

"The deal is timely, and solidly run," said Scott Sweet, managing director of research firm IPO Boutique, in an e-mail to the Associated Press. "This should be another in the string of strong Chinese offerings."

IPO research firm MorningNotes.com rated the deal "A+," indicating the potential for significant premium over the offering price and short-to-intermediate term outperformance.

CNinsure plans to use proceeds from its portion of the offering to fund acquisitions and establish joint ventures. The company also plans to upgrade its information technology infrastructure, expand its call centers, establish Internet-based sales operations and for working capital.

Morgan Stanley was the IPO's lead underwriter. William Blair & Co., Fox-Pitt Kelton Cochran Caronia Waller and Piper Jaffray also served as underwriters.

The underwriters have an option to buy up to about 1.8 million additional ADS from the company to cover any overallotments.

CNinsure ADS are trading on the Nasdaq Global Market under the symbol "CISG."

orting by Lilla Zuill)