CNinsure brokers a hot IPO

CNinsure (Nasdaq: CISG) upped its offering range twice — $11- $13 to $13-$15.  But that was still too low.  That is, the company priced its IPO at $16.  And so far in today’s trading, the stock is up 61% to $25.80.

Why all the excitement?  Well, this is a Chinese company (need I say more?)

More importantly, it’s a leader in a fast growing space:  insurance brokerage.

Of course, the macro factors are strong.  The population is getting older and richer.  Besides, insurance is fairly underpenetrated in China.

CNinsure was smart to build an extensive distribution network, which is no easy feat.  Moreover, the information technology (IT) infrastructure should scale nicely.

With the IPO proceeds, CNinsure plans to buy up some of its competitors.  In fact, the company has over 170 targets. 

In other words, CNinsure wants to keep the growth-rate supercharged.  And so far, it seems to be working.

Also, click here to check out other recent IPO activity.