Type to search

Insurer FWD Group Raises $200m in Pre-IPO Funding

The deal means the Richard Li-backed group has raised $1.6 billion in the past month after the company ditched its US listing plans


Richard Li, Hong Kong businessman and son of tycoon Li Ka-shing, is seen in Hong Kong in March 2017. Photo: Bobby Yip, Reuters.

 

Asian insurer FWD Group has raised $200 million in new funding ahead of its planned Hong Kong initial public offering (IPO), according to two sources with direct knowledge of the matter.

The sources could not be named as the information had not yet been made public. FWD Group declined to comment.

Two new investors, Orix and Huatai Securities, participated in the private placement, the sources said. Orix declined to comment and Huatai did not respond to a request for comment.

The deal means the Richard Li-backed FWD Group has raised $1.6 billion in the past month after the company ditched its US IPO plans.

The first capital raising of $1.4 billion valued FWD Group at $9 billion on a post money basis, sources told Reuters in December.

It now plans to carry out a Hong Kong IPO after it struggled to receive full approval from US regulators to list in New York. FWD Group had planned to raise $2 billion to $3 billion in the US offering.

The company received preliminary approval in December from the Securities and Exchange Commission (SEC) to carry out a marketing roadshow to investors, but still needed full sign-off from regulators, sources said at the time.

FWD has a business presence in 10 Asian markets, according to its website.

 

  • Reuters with additional editing by Sean O’Meara

 

ALSO READ:

 

 

FWD Group Raises $1.4bn Ahead of Hong Kong IPO

 

How M&A insurance unlocks value for Asia’s dealmakers

 

China Life Insurance Chief Investigated by Graft Watchdog

 

WATCH MORE:

 

Tags:

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

logo

AF China Bond