BEIJING - The People's Insurance Company (Group) of China will increase its initial public offering proportion from 5 percent to 7.5 percent in Hong Kong as its IPO has been oversubscribed by the city's investors, the company said on Thursday.

The IPO of the mainland's second-largest insurer has been 15 times oversubscribed in Hong Kong as of noon on Thursday, so the company decided to give a greater percentage of the offering to Hong Kong investors in order to meet their strong demand for the shares, according to PICC.

The insurer has set a 3.42-4.03 Hong Kong dollars indicative price range for the offering, meaning it could raise up to $3.6 billion. That would make it the biggest IPO in Hong Kong this year and the largest by a Chinese state-owned company since 2010.

The PICC will formally price its IPO on Friday and is set to list on the Main Board of the Stock Exchange of Hong Kong Ltd on Dec 7.