FWD Group, the pan-Asian insurer founded by Richard Li, launched its long-delayed Hong Kong initial public offering (IPO) plan, seeking to raise as much as HK$3.99 billion (US$512 million) in gross proceeds amid a slew of jumbo deals in the city.
The company is selling 91.34 million shares at HK$38 each, with an option to upsize it to 105 million shares via an overallotment to IPO managers, according to its filing to the stock exchange on Thursday. The pricing pegs its market capitalisation at HK$48.3 billion, assuming the option is not exercised.
Ten per cent of the IPO shares will be set aside for Hong Kong investors, subject to demand and reallocation. Investors can place orders from Thursday to July 2, with trading to begin on July 7 under the stock code 1828, according to its proposed timetable.
FWD plans to use the net proceeds to bolster its capital base and financial flexibility, according to the filing. This may include reducing debt, supporting growth, expanding customer and channel reach, and enhancing its digital capabilities.
Morgan Stanley and Goldman Sachs are the joint sponsors. They are also joint global coordinators, joint bookrunners and joint lead managers and overall coordinators with CMB International and HSBC.
