FWD delays Hong Kong IPO for the second time
FWD delays Hong Kong IPO for the second time | Insurance Business Asia
Insurance News
FWD delays Hong Kong IPO for the second time
Sources close to the matter highlight one reason
Insurance News
By
Kenneth Araullo
FWD postponed its intended US$1 billion listing, which was initially filed in February 2022 and later in May of the same year, also citing market volatility.
These attempts at Hong Kong listings followed the insurer’s decision to abandon a plan to list in New York in 2021 amid ongoing US-China tensions. Initially, the aim was to raise up to US$3 billion in New York in September 2021, a move that would have valued the company at US$13 billion.
A source familiar with the matter commented on the current situation, noting that the insurer was in no rush as it is financially strong. Meanwhile, the “market condition is not good,” the source said.
The Hang Seng Index has been on a downward trajectory, with year-to-date losses stand at 9.2%, making it the weakest performer among the world’s major stock benchmarks. This decline is attributed to overseas investors selling off holdings due to concerns about China’s challenging economic outlook and strained relations with the US.
FWD emphasized that it has not abandoned its IPO plans, saying that it “will assess the appropriate time to further re-filed the application.”
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