China Life sees $3.6 bln Shanghai listing in Jan

SHANGHAI, Dec 13 (Reuters) China Life Insurance Co. will launch a 28 billion yuan ($3.57 billion) A-share offer this month and list them in Shanghai in January in what would be the second-biggest share sale ever in mainland China.

The official China Securities Journal said in a front-page report that China Life, the country's largest life insurer , aimed to complete the offer of up to 1.5 billion local currency A-shares by the end of this year.

The shares are likely to be issued at around 10 percent discount to its Hong Kong-listed shares, which closed at HK$19.02 on Tuesday, the newspaper quoted investment banking sources as saying.

Based on 90 percent of the company's current Hong Kong price, China Life could raise more than 25 billion yuan, the paper said.

The issue would raise 28 billion yuan it is priced at the same as its Hong Kong shares.

Its Hong Kong stock has nearly tripled in the past year on sharply rising premiums and higher returns from investments.

China Life would become the first domestic insurance company to sell shares in mainland China, where the stock market has surged more than 80 percent this year.

China Securities Regulatory Commission (CSRC), the country's top stock market watchdog, is expected to approve China Life's A-share application on Friday.

China Life has said it planned to use the proceeds to boost its payment ability, benefiting its long-term development.

China Life's parent said earlier this week that it would buy a $4.5 billion stake in state-run China Southern Power Grid in a deal that diversifies its investments.

REUTERS DKS PM0543