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Richard Li’s FWD postpones its listing plan in Hong Kong amid persistent stock market slump, sources say

  • FWD’s IPO is on hold because the market sentiment is really bad, but it has not been abandoned altogether and can be revived once the market improves, a source said
  • The company will explore the Hong Kong listing plan before the end of 2022, the source said

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An undated photo of FWD’s corporate signage. Photo: Shutterstock
Peggy Sito

FWD Group Holdings, the Hong Kong-based insurer backed by tycoon Richard Li Tzar-kai, has decided to postpone its plan to list its shares on the city’s exchange due to ongoing market volatility.

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The decision was made eight days after the insurer received the go-ahead from the listing committee of the Hong Kong stock exchange, according to a source familiar with the matter. The insurer, which ranks among the top three insurers in Thailand and the Philippines, had applied in February to raise about US$1 billion in an initial public offering in Hong Kong.

FWD’s stock sale is on hold because the market sentiment is really bad, but it has not been abandoned altogether and can be revived once the market improves, the source said, declining to be named for discussing a matter that has not been announced. The company will explore the Hong Kong listing plan before the end of 2022, the source said.

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Hong Kong’s benchmark Hang Seng Index fell 9.3 per cent this year, ranking as the 24th worst performer out of 92 global indexes. The market slump had deterred companies from raising funds, shrinking Hong Kong’s first-quarter IPOs down by 90 per cent to sixth place in worldwide rankings.

Richard Li Tzar Kai during the graduation ceremony at Shantou University on June 27, 2017 in Shantou, China. Photo: Getty Images.
Richard Li Tzar Kai during the graduation ceremony at Shantou University on June 27, 2017 in Shantou, China. Photo: Getty Images.
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