Cornerstones pledge $1.35 bln to PICC's HK IPO-sources

HONG KONG Tue Nov 20, 2012 11:26pm EST

HONG KONG Nov 21 (Reuters) - Chinese state utility State Grid Corp and machinery maker Sinomach were among a group of 16 companies that pledged $1.35 billion as cornerstone investors in PICC Group's up to $3.6 billion Hong Kong initial public offering, sources with direct knowledge of the plans told Reuters on Wednesday.

State Grid agreed to buy $300 million worth of shares in the IPO, added the sources, who were not authorized to speak publicly on the matter. Chinese machinery group China National Machinery Industry Corporation (Sinomach) pledged $150 million, while fund manager Munsun AM agreed to another $140 million.

People's Insurance Company (Group) of China Ltd, one of the country's largest insurers, set the price for the IPO, the largest in Hong Kong in two years, earlier on Wednesday.