Richard Li’s FWD files for Hong Kong listing amid slew of jumbo IPO deals
Insurer will get a market value of HK$48.3 billion based on its IPO price of HK$38 each, before an overallotment option
FWD Group, the pan-Asian insurer founded by Richard Li Tzar-lai, 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.
Thirty-six companies, mostly mainland-based, have raised about US$12.9 billion on the Hong Kong stock exchange this year through June 25, surpassing the US$11.3 billion proceeds in all of 2024, according to data from the London Stock Exchange Group. Nasdaq ranked a distant second with US$8.7 billion from 69 issues.
Contemporary Amperex Technology, the world’s largest EV battery maker, raised US$5.22 billion from its IPO last month. Jiangsu Hengrui Pharmaceuticals, Foshan Haitian Flavouring & Food and Zhejiang Sanhua Intelligent Controls also completed their billion-dollar deals this year.
The FWD offering drew cornerstone investors from Mubadala Capital, a unit of Abu Dhabi’s investment company, which has committed to subscribe for about HK$1.17 billion of the IPO shares.
Founded in 2013, FWD has operations in 10 regional markets: Hong Kong, Macau, Thailand, Cambodia, Japan, the Philippines, Indonesia, Singapore, Vietnam and Malaysia, according to its prospectus.
Li will effectively control 66.45 per cent of the insurer after the IPO exercise, according to the firm’s listing prospectus. Other major investors include Chinese private equity firm Hopu (10 per cent), Swiss Re (5.7 per cent) and Singapore sovereign wealth fund GIC (5.4 per cent).
