Pan-Asian life and health insurer FWD Group is aiming to raise up to HK$4 billion (US$512 million) from its Hong Kong initial public offering (IPO, stock code 1828), with the public subscription period closing at 12pm today (July 2).
The Hong Kong-headquartered company is offering 91,342,100 shares at an indicative price of HK$38.00 per share. If the over-allotment option is fully exercised, gross proceeds will total approximately HK$3.992 billion; without it, the offering will raise about HK$3.471 billion (US$445 million).
FWD has secured cornerstone investment from Mubadala Capital, the asset management arm of Abu Dhabi’s Mubadala Investment Company, which will subscribe for HK$1.17 billion (US$150 million) of the global offering.
The company said in a media release that net proceeds will be used to enhance its capital position and financial flexibility, including potential debt reduction, and to support business growth. This includes further digital investment, and deeper customer and channel penetration across its ten Asian markets.
Trading of FWD shares is expected to begin on the HKEX main board on July 7, with shares to be traded in board lots of 100.
According to a filing with the Hong Kong Stock Exchange, the listing is being backed by a wide syndicate of banks.
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Goldman Sachs and Morgan Stanley are joint sponsors, joint global coordinators, joint bookrunners, joint lead managers, and overall coordinators.
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CMBI and HSBC share the same roles, with HSBC also acting as financial adviser.
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Senior joint lead managers include BOCOM International, CCB International, Huatai International, ICBC, Mizuho, SMBC, and SMBC Nikko.
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Joint lead managers are DBS Bank, OCB, and UOB Kay Hian.
In a statement, Huynh Thanh Phong, group CEO and executive director, said the company had made significant strides since its founding in 2013.
“FWD Group has come a long way since we founded the company in Hong Kong, with a mission of moving the life insurance industry in a new direction—centred around the unique needs of customers and leveraging the latest technology,” he said.
“Today, across our 10 markets in Asia, we’re focused on sustainable growth and value creation by changing the way people feel about insurance for the better. We’re 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.”
