FWD Group targets H. Kong IPO up to $9b

Billionaire Richard Li is reviving plans for an IPO of FWD Group, a Hong Kong-based insurer, Reuters reported on Thursday citing three sources. Previous attempts were hindered by regulatory delays and market volatility.

FWD could target a valuation of up to $9 billion in the IPO, depending on prevailing financial market conditions at the launch date, said one of the sources. However, the deal timeline and offering size remain undecided at this stage.

Li established FWD in 2013 and controls it through his investment arm, Pacific Century Group. Pacific Century Group boasts a diversified portfolio encompassing technology, media, telecommunications, property, and financial sectors.

FWD previously attempted an IPO listing in Hong Kong in 2022, aiming for a valuation of at least $10 billion at that time. However, volatile market conditions forced the company to shelve the plan.

In 2021, FWD also considered a New York IPO intending to raise $2 billion to $3 billion. This plan was ultimately abandoned due to lengthy delays in obtaining US regulatory approval.

The sources emphasised that the revived Hong Kong listing plan is in its early stages and remains contingent on market conditions and investor sentiment.

A successful FWD IPO would boost Hong Kong’s financial centre, which has seen fewer new listings due to a slowing Chinese economy and geopolitical tensions. The Hang Seng index has risen nine per cent in 2024 after a 13.8 per cent decline last year.

FWD operates across 10 Asian markets. The company raised $1.83 billion through private placements in 2021 and 2022, according to Reuters reports. These placements valued FWD at around $9 billion on a post-money basis.