The People’s Insurance Company of China (PICC) launched on the Hong Kong stock exchange on Friday, raising $US3.1 billion ($2.96 billion) by floating a 16.7% stake.

The sale was struck at $HK3.48 (42 cents) per share, well off the top of the projected price range.

A sale at $HK4.03 (50 cents) – top of the range – would have yielded $US3.6 billion ($3.43 billion) for the state-owned company.

Half the stock was sold to cornerstone investors including AIG – which put in $US500 million ($477.44 million) – China Life, Tokio Marine, French reinsurer Scor and Chinese infrastructure group State Grid.

The listing is the largest in Hong Kong since AIG floated its Asian business AIA for $US20.5 billion in 2010 to help repay a $US182 billion US government bailout.

PICC is the parent of Hong Kong-listed PICC Property and Casualty. It has a nationwide presence in China, with 2.42 million institutional customers and 130 million individual policyholders.

It initially planned to release another 16.7% of stock on the Shanghai exchange but weak conditions saw the move cancelled.