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IPO
BusinessBanking & Finance

Richard Li-controlled insurer FWD refiles Hong Kong IPO application

  • IPO proceeds will be used to support growth, enhancement of digital capabilities and strategy, firm says in prospectus
  • Insurer shelved plan to list in New York in 2021 amid ongoing US-China tensions

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An FWD hoarding in Hong Kong’s Causeway Bay. The underlying value of the insurer’s new business increased to US$806 million last year, according to its prospectus. Photo: Dickson lee
Martin Choi
FWD Group Holdings, the Hong Kong-based insurer backed by tycoon Richard Li Tzar-kai, on Monday afternoon refiled its application to list on the city’s stock exchange, having postponed its planned listing in May last year due to ongoing market volatility.
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Proceeds from the initial public offering (IPO) will be used to “support growth” and the “enhancement of our digital capabilities and strategy”, FWD said in its prospectus.

The insurer shelved its plan to list in New York in 2021 amid ongoing US-China tensions that deteriorated to their lowest level in decades. It had aimed to raise up to US$3 billion in New York in September 2021, which would have valued the entire company at US$13 billion.
FWD has not disclosed how much it aims to raise from the Hong Kong IPO, but Bloomberg reported that the deal size could now be trimmed to US$1 billion.

It usually takes at least six months for a new issuer to obtain all the approvals and clearances from Hong Kong’s exchange before an IPO can kick off. CMB International, Goldman Sachs, JPMorgan and Morgan Stanley are helping the company with the planned stock offering.

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