FWD Group’s IPO hits potential roadblock as US regulator asks questions about Beijing’s hold over Hong Kong companies, sources say
- SEC is asking about potential risks associated with Beijing extending its authority over Hong Kong-based firms, said people familiar with the matter
- FWD had hoped to raise US$2 billion to US$3 billion in its US listing
The insurer has yet to receive final approval from the US Securities and Exchange Commission (SEC) as the watchdog is asking about potential risks associated with the Chinese government extending its authority over Hong Kong-based firms, according to the people, who were not authorised to discuss the matter publicly.
FWD has not withdrawn its IPO, but it is unlikely the listing will be completed before the end of the year given the additional regulatory scrutiny, the people said. The company declined to comment.
If an issuer wants to start its roadshow, it must do so within 135 days of its latest financial statement cut-off date filed in its prospectus. As FWD’s latest financial statement cut-off was at the end of June, this means that the window will probably expire by the end of this month.
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Bloomberg reported the regulatory hurdles the IPO was facing earlier on Tuesday.
