Richard Li’s FWD Group is moving forward with plans to list on the Hong Kong stock exchange, sources with direct knowledge of the situation told Reuters.
This decision follows previous attempts thwarted by regulatory delays and volatile market conditions.
Reuters reported that Hong Kong-headquartered insurer could be targeting a valuation of up to $9 billion for the initial public offering (IPO), depending on the prevailing financial market conditions at the time of the launch, according to one source.
However, the exact timing and size of the offering have not yet been determined. The sources requested anonymity as they are not authorised to speak to the media.
“While we do not currently have an active listing application, and no decisions have been made to refile at this stage, of course we continue to keep a close eye on capital market developments and conditions,” a spokesperson for FWD said, as reported by Reuters.
Founded in 2013 by Richard Li, FWD is controlled through his investment company, Pacific Century Group, which has interests across various sectors including technology, media, telecoms, property, and finance.
In a previous attempt to list in Hong Kong in 2022, FWD targeted a valuation of at least $10 billion, but the deal was put on hold due to market volatility. The company also attempted to raise $2 billion to $3 billion through a New York IPO in 2021, which was also shelved due to prolonged US regulatory approval processes.
The current plan to list in Hong Kong is still in its preliminary stages and could be adjusted based on market conditions and investor sentiment, the sources told Reuters.
FWD recently released its business results for the three months ended March 31 (Q1 2024). It boasted a value of new business (VNB) of US$215 million, up 17% from the first quarter of 2023 (Q1 2023). New business sales rose to US$460 million, a 10% increase compared to the previous year.
FWD’s Hong Kong operations, along with the group’s other segments, reported growth in new business sales and VNB.
