Hong Kong’s FWD Group Raises $1.8 Billion in Private Placements Over Past 2 Years

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FWD Group Holdings Ltd. raised a total of $1.8 billion in private placements over the past two years, as the pan-Asian insurance company owned by Hong Kong billionaire Richard Li moves a step closer to its planned initial public offering.

The increased figure, up from the more than $1.4 billion announced in Dec. 2021, comes ahead of the insurance company’s expected share sale this year. Investors in the placements include Apollo Global Management Inc., Canada Pension Plan Investment Board, Huatai Securities Co., Li Ka Shing Foundation, Metro Pacific Investments Corp. and Li’s investment vehicle Pacific Century Group, among others, the company said in a statement Tuesday.

The insurer also reported full-year value of new business in 2022 climbed to $823 million, 29% higher than a year earlier on a constant exchange rate basis, according to a filing to the Hong Kong stock exchange on Tuesday. Adjusted operating profit before tax rose 83% to $334 million, it said.

FWD’s results were strong despite the ongoing headwinds from COVID, Chief Executive Officer Huynh Thanh Phong said in the statement. “We’ve emerged from the pandemic as a stronger company, protecting more people with our digitally-enabled platform,” he said.

Founded 10 years ago, FWD has expanded across Asia both organically and via acquisitions. Last week, it agreed to buy a majority stake in Gibraltar BSN Life Bhd. to tap into Malaysia’s growth potential. It counts more than 10 million customers across markets in the region.

The company continues to work towards an IPO in Hong Kong this year, Bloomberg News has reported. It could seek to raise about $1 billion from the IPO, people familiar with the matter have said.

Photograph: A digital billboard advertising FWD Group Holdings Ltd. atop a building in Hong Kong, China, on Saturday, Oct. 15, 2022. Photo credit: Lam Yik/Bloomberg

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