Prudential PLC (LSE:PRU), the UK-based insurer, has confirmed plans to raise HK$22.5bn (£2bn) through a listing of new shares on the Hong Kong stock market.
The London-listed group said it would sell 130.8mln new shares or about 5% of its total in issue through a combination of an institutional placing, an employee tranche and an offer of 6.5mln shares to local investors in Hong Kong.
Pricing will be determined next Saturday. 25 September but will be a maximum price of HK$172 per share, with dealings in the shares to start in Hong Kong on 4 October.
Prudential is braving a choppy few weeks for shares in Hong Kong by going ahead with its fundraising at this time.
The Hang Seng index fell 3% overnight on concerns that property group Evergrande might be about to collapse with potential knock-on effects across banks in China, while political relations have soured with the West following the clampdown on protests against changes to democracy laws in Hong Kong.
Prudential said the fundraise would give it more flexibility over its finances and has earmarked a big chunk of the new money to redeem existing high-coupon debt.
Mike Wells, the insurer’s chief executive, added: "Prudential is now entirely focused on long-term structural growth opportunities in Asia and Africa.
“This share offer will maintain and enhance Prudential's financial flexibility in light of the breadth of opportunities to invest for growth.”
Earlier this year the group demerged its US arm Jackson Life as a part of the new strategy and said today the new money would enable it to branch further into other parts of Asia such as China, Indonesia, India and Thailand as well as consolidating its position in SE Asia and Hong Kong.
Prudential currently has 20 branches covering 99 cities in mainland China, is a top-three provider of life insurance in India and the market leader in the overall life insurance market and the sharia-compliant market in Indonesia.