Richard Li backed insurance company FWD files for USD 3 billion US IPO

Richard Li backed insurance company FWD files for USD 3 billion US IPO

by Pranali Mehta

Hong-Kong based multinational insurance firm, FWD which is backed by billionaire Richard Li, has been reported to have confidentially filed for a US initial public offering, proceeding with the preparations for a long-awaited listing.

FWD Group and the holding company of FWD has reportedly submitted a draft registration with the US Securities and Exchange Commission for the planned share sale in confidentiality.

However, the company did not mention the timeline and size of the offering.

According to the sources of knowledge, FWD has been seeking to raise around US$3 billion through a US IPO as early as the third quarter. The listing is expected to value the insurance firm at more than US$15 billion.

The sources have suggested that the company has been working with advisers for adjusting its accounting records to the US standards. The US listing would enable Li to have control over the company through Pacific Century Group, his investment manager, the source mentioned.

FWD is known to have considered a variety of options during the last few months that include a first-time share sale in Hong Kong. Reportedly, the insurer has also weighed plans like US listing through a merger with a special purpose acquisition company.

In 2020, the firm had selected banks such as Morgan Stanley, Goldman Sachs Group Inc, and JP Morgan Chase & Co for its planned initial public offering in Hong Kong. Through this offering, it had estimated to raise as much as US$3 billion. HSBC Holdings Plc also worked on that offering, credible sources cited.

For the records, FWD, established in 2013, has made a series of acquisitions across Asia during the recent years. The company’s business has been spread across the countries such as Hong Kong, Thailand, Macau, Indonesia, Singapore, the Philippines, Vietnam, Malaysia and Japan.

The minority shareholders of the insurer comprise of the fellow insurer Swiss Re AG as well as RRJ Capital, GIC Ventures, and Hopu Investments.

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Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...