Latest news with #FWD
Reuters
a day ago
- Business
- Reuters
Breakingviews - Richard Li redefines IPO success
HONG KONG, June 26 (Reuters Breakingviews) - Richard Li is nothing if not relentless. The tycoon's pan-Asian insurer FWD is going public after multiple false starts. A $6.2 billion, opens new tab market capitalisation is less than half what Li once targeted. But there are plenty of silver linings. When founder and controlling shareholder Li first tried to list his company in New York in 2021, the group aimed for a valuation of up to $15 billion, sources told Reuters. When that floundered, FWD instead tried for a Hong Kong debut in 2022, but rocky markets thwarted a further two attempts there. FWD's world changed dramatically in the interim. Its closest peers, Asia-focused insurers Prudential (PRU.L), opens new tab and AIA ( opens new tab, have shed around a fifth and a third of their value since 2021 as China's economy stalled, leaving Hong Kong's market in a slump. FWD shifted to steadier growth after an action-packed decade of acquisitions. Its operating profit after tax still outpaces its older, larger rivals, climbing 29% last year to $463 million, while AIA and Pru each managed about 7%. But the value of new business – a measure of estimated future profits from policies sold – rose 14% last year, compared with 28% in 2021. That makes today's $6.2 billion price tag pretty punchy. At HK$38 per share, the pan-Asian insurer is worth 1.1 times its embedded value in 2024 – roughly in the middle of Pru's 0.9 multiple and the 1.4 times sported by AIA. The deal stands out in other ways too. If FWD exercises its overallotment option to hit around $510 million in proceeds, it would be level with Mixue's ( opens new tab $511 million capital raise in February, the city's largest IPO so far this year. True, it's far below the $3 billion targeted in New York. However, Li was able to drum up some $1.8 billion through pre-IPO private funding rounds in 2021 and 2022, making up some of the difference. And in some respects the IPO is testing the waters: the company is only selling a small slug of stock – less than 10% – and no existing shareholders are cashing out. That means Li and fellow owners can still hold out hope that public markets may at some point bump up FWD's value. For now, a successful deal is being redefined as one that can get done at all. Follow Katrina Hamlin on Bluesky, opens new tab and Linkedin, opens new tab.
Yahoo
a day ago
- Business
- Yahoo
FWD Group targets $442m in Hong Kong IPO
Insurer FWD Group, backed by billionaire Richard Li, has announced plans to raise HK$3.47bn through an initial public offering (IPO) in Hong Kong. According to a regulatory filing, the pan-Asian insurer will offer 91.3 million shares priced at HK$38 each, valuing the company at HK$48.298bn. Mubadala Capital, a subsidiary of Abu Dhabi's sovereign wealth fund, has committed to purchasing $150m worth of FWD shares in the IPO. Additionally, a subsidiary of Japanese life insurer T&D Holdings will acquire $100m of the stock, as outlined in the filings. FWD Group plans to use the net proceeds to strengthen its capital position, reduce debt and support operational growth, including enhancements to its digital infrastructure. Trading of FWD Group shares is scheduled to commence on 7 July 2025 under the stock code 1828, with shares traded in board lots of 100. Morgan Stanley Asia and Goldman Sachs (Asia) are acting as joint sponsors, joint global coordinators, joint bookrunners and joint lead managers for the offering. This marks FWD Group's third attempt at a public listing. A planned New York IPO in 2021, targeting $2–3bn, was abandoned due to delays in securing US regulatory approval, with scrutiny over the company's connections to mainland China. A subsequent Hong Kong IPO attempt in 2022 was deferred due to unstable global financial markets. FWD Group CEO and executive director Huynh Thanh Phong said: 'FWD Group has come a long way since we founded the company in Hong Kong in 2013, with a mission of moving the life insurance industry in a new direction – centred around the unique needs of customers, leveraging the latest technology. 'Today, across our ten markets in Asia, we are focused on sustainable growth and value creation by changing the way people feel about insurance for the better. We are doing this by designing compelling products and leveraging our tech-enabled distribution, as well as our distinctive brand, to meet the protection and savings needs of the region's rapidly expanding middle classes and high-net-worth individuals.' "FWD Group targets $442m in Hong Kong IPO " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
2 days ago
- Business
- Time of India
FWD Group launches US$512 million Hong Kong IPO, targeting HK$48.3 billion valuation
FWD targets HK$3.99 billion in gross proceeds through IPO FWD Group, the pan-Asian insurer founded by Richard Li Tzar-lai , has officially launched its long-anticipated initial public offering (IPO) in Hong Kong. The company is aiming to raise up to HK$3.99 billion (US$512 million) in gross proceeds, according to its stock exchange filing on Thursday, June 26. The insurer is offering 91.34 million shares at HK$38 each. An overallotment option granted to IPO managers could increase the offer size to 105 million shares. Based on the offer price and excluding the overallotment, FWD will be valued at HK$48.3 billion. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Also read: Chinese exports flood Southeast Asia on US tariffs, Citi says Ten per cent of the IPO shares will be allocated to Hong Kong investors, subject to demand and reallocation. The subscription period runs through July 2, with trading expected to begin on July 7 under stock code 1828. Live Events FWD Group stated it will use the net proceeds to bolster its capital base and enhance financial flexibility. This includes reducing existing debt, supporting organic and inorganic growth opportunities, expanding its customer base and distribution channels, and investing in digital infrastructure. Cornerstone investors and market context support FWD IPO Mubadala Capital, a unit of Abu Dhabi's sovereign wealth fund, has agreed to be a cornerstone investor, subscribing to approximately HK$1.17 billion of the IPO shares. FWD's IPO arrives amid a surge in large-cap offerings on the Hong Kong Stock Exchange. As of June 25, thirty-six companies, primarily mainland-based, have raised a combined US$12.9 billion in Hong Kong IPOs, surpassing the US$11.3 billion raised in all of 2024, according to data from the London Stock Exchange Group. In comparison, Nasdaq raised US$8.7 billion from 69 offerings over the same period. Contemporary Amperex Technology led recent listings with a US$5.22 billion raise. Other notable deals in 2025 include Jiangsu Hengrui Pharmaceuticals, Foshan Haitian Flavouring & Food, and Zhejiang Sanhua Intelligent Controls. Also read: Factories under threat, Southeast Asian countries look to court Trump to ease the pain Morgan Stanley and Goldman Sachs are acting as joint sponsors, joint global coordinators, joint bookrunners, and joint lead managers for the FWD IPO. They are joined by CMB International and HSBC in overall coordination. FWD Group, founded in 2013, operates across 10 Asian markets: Hong Kong, Macau, Thailand, Cambodia, Japan, the Philippines, Indonesia, Singapore, Vietnam, and Malaysia. Following the IPO, Richard Li will retain effective control of 66.45 per cent of the company. Other major shareholders include Hopu Investment Management (10 per cent), Swiss Re (5.7 per cent), and Singapore's GIC (5.4 per cent), according to the listing prospectus.
New Straits Times
3 days ago
- Business
- New Straits Times
Billionaire Richard Li's FWD Group seeks to raise US$442mil in Hong Kong IPO
KUALA LUMPUR: Insurer FWD Group, backed by billionaire Richard Li, is looking to raise HK$3.47 billion (US$442.08 million) through a Hong Kong initial public offering, according to a regulatory filing on Thursday. The pan-Asian insurer is offering 91.3 million shares at HK$38.00 apiece, valuing FWD at HK$48.298 billion (US$6.15 billion), the filings showed. Mubadala Capital, a subsidiary of Abu Dhabi's sovereign wealth fund, has subscribed to buy US$150 million worth of FWD shares in the IPO and a subsidiary of Japanese life insurer T&D Holdings will buy US$100 million of stock, the filings showed. The stock will start trading on the Hong Kong Stock Exchange on July 7. There is a so-called 'greenshoe option' to sell a further 13.7 million shares to raise an extra US$67 million. The company said it would use the proceeds to improve its capital position, reduce debt and grow its customer base and digital strategies. FWD said while it was not directly impacted by U.S President Donald Trump's April tariffs package, customers in some of major markets including Vietnam, Thailand and Indonesia would be hit. "These developments could also have potential inflationary effects, affect global supply chains, and result in the reduction of manufacturing and export capacity and loss of employment in our key markets," FWD said in the risk factors section of its prospectus. The deal is FWD's third attempt to go public after it initially aimed for a New York IPO in 2021 to raise US$2-US$3 billion. The insurance group shelved the plan due to lengthy delays in obtaining US. regulatory approval. FWD faced questions from the US regulators on its mainland China ties, Reuters reported citing sources, and had been treated by authorities as a Chinese business rather than a Hong Kong entity. FWD then targeted a Hong Kong IPO in 2022 but put those plans on hold due to volatile global financial markets at the time. FWD raised about US$1.8 billion in private funding rounds in 2021 and 2022 which valued the business at around US$9 billion, Reuters reported at the time. The company made a US$10 million net profit in 2024, according to its prospectus, compared to a US$717 million loss the prior year. Li, the son of Hong Kong's richest person Li Ka-shing, founded FWD in 2013 and controls it via investment arm Pacific Century Group, which has interests in the technology, media, telecoms and property as well as financial sectors. Hong Kong listing volumes have rebounded this year, overcoming subdued activity in the last couple of years with CATL's US$5.3 billion listing and Jiangsu Hengrui Pharmaceuticals' US$1.27 billion listing.
Straits Times
3 days ago
- Business
- Straits Times
Billionaire Richard Li's FWD Group seeks to raise $565 million in Hong Kong IPO
Richared Li, the son of Hong Kong's richest person Li Ka-shing, founded insurer FWD in 2013. PHOTO: REUTERS SYDNEY - Insurer FWD Group, backed by billionaire Richard Li, is looking to raise HK$3.47 billion (S$565 million) through a Hong Kong initial public offering (IPO), according to a regulatory filing on June 26. The pan-Asian insurer is offering 91.3 million shares at HK$38 apiece, valuing FWD at HK$48.298 billion, the filings showed. Abu Dhabi's sovereign wealth fund Mubadala has subscribed to buy US$150 million worth of FWD shares in the IPO and a subsidiary of Japanese life insurer T&D Holdings will buy US$100 million of stock, the filings showed. The stock will start trading on the Hong Kong Stock Exchange on July 7. FWD said it would use the proceeds to improve its capital position, reduce debt and grow its customer base and digital strategies. The deal is FWD's third attempt to go public after it initially aimed for a New York IPO in 2021 to raise up to US$3 billion (S$3.8 billion). The insurance group shelved the plan due to lengthy delays in obtaining US regulatory approval. FWD faced questions from the US regulators on its mainland China ties, Reuters reported citing sources, and had been treated by authorities as a Chinese business rather than a Hong Kong entity. FWD then targeted a Hong Kong IPO in 2022 but put those plans on hold due to volatile global financial markets at the time. Mr Li, the son of Hong Kong's richest person Li Ka-shing, founded FWD in 2013 and controls it via investment arm Pacific Century Group, which has interests in the technology, media, telecoms and property as well as financial sectors. Hong Kong listing volumes have rebounded in 2025, overcoming subdued activity in the last couple of years with CATL's US$4.6 billion raise and Jiangsu Hengrui Pharmaceuticals' US$1.27 billion listing. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
