Global insurer Prudential is looking to issue around 131 million shares on the Hong Kong stock exchange.
The firm plans to raise up to $2.89bn (£2.1bn, €2.43bn), where 95% of the shares will be from an international placing and the remaining 5% (approximately 6.5m shares) from a public offer available to Hong Kong residents, with a preferential offer for some of its employees.
For the public offer, the insurer said shares will be no more than HK$172 (£16, $22, €18) each. Most of the proceeds will be used to repay debt, while the rest will boost Prudential’s growth in Asia.
The move was first disclosed in March 2021, but after the announcement, Prudential’s shares fell 4.1%.
Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: “Prudential is closing the book on a messy chapter, with the breakup of the American and Asian businesses now complete, it’s looking to make the most of opportunities in Asia.
“The addressable market here is huge, so coming to the market cap-in-hand does make sense. The scale of the amount needed might be a bit disappointing, but it also adds risk. When you’ve asked for money, the reaction will be harsh if things don’t go to plan.
“The mammoth task ahead is also limiting returns to shareholders, with the dividend yield a little under 1%. Again, this is by no means a huge issue. However, the biggest question now is one of execution. Grandiose opportunity is very different to pulling it off.”
