Pacific Century downplays FWD sale, says IPO will come at ‘opportune time’ and billionaire Richard Li to keep control of insurer
- FWD’s parent, Pacific Century Group, said Li was ‘confident about the long-term development of the company’, and that it would evaluate the timing of an IPO
- FWD was reportedly considering a stake sale earlier this month at a valuation of more than US$10 billion, after its US$1 billion Hong Kong IPO was delayed again
Hong Kong billionaire Richard Li Tzar-kai will maintain his control of Hong Kong-based FWD Group Holdings amid speculation about a potential stake sale that values the regional insurer at about US$10 billion, after it struggled to raise funds through an initial public offering (IPO).
Pacific Century Group, which controls the insurer, said Li will maintain his grip on FWD, adding that the billionaire was “confident about the long-term development of the company”, according to a statement released on Sunday. The group declined to comment on the stake sale speculation.
The Asia-based private investment company said FWD has achieved an average annual growth rate of over 23 per cent during the past 10 years in terms of value of new business, a measure of the present value of future profits from policies issued during a period.
New business sales grew 22 per cent to US$1.25 billion in the nine months to September 2023, according to the latest data published on its website. The value of new business increased 21 per cent to US$724 million from the same period a year earlier.
Pacific Century Group said it understands FWD’s IPO timeline is of great interest to the market, noting that the subsidiary should evaluate the timing to go public in a holistic manner, in addition to assessing the market environment.
