Prudential PLC plans to raise up to US$2.89 billion in a new share offering in Hong Kong as the insurance giant eyes long-term growth opportunities in Asia and Africa.
Prudential intends to offer about 130.8 million shares, or up to 5 percent of its issued share capital, on the Hong Kong stock exchange through a concurrent public offer and international placing to increase its Asian shareholder base, it said in a statement on Saturday.
The new shares would be offered at a maximum of HK$172 (US$22.09) apiece and would be traded in Hong Kong on Oct. 4. Pricing is expected on Saturday, Prudential said.
COUPON DEBT
The company plans to use US$2.25 billion of the sale proceeds to redeem existing high coupon debt, with the balance to contribute to investments in Asia and Africa, where Prudential chief executive officer Mike Wells said it would be “entirely focused on long-term structural growth opportunities.”
ASIAN RIVAL
The offering comes days after Prudential completed the demerger of its US unit, Jackson Financial Inc, a move that could accelerate its competition with pan-Asia life insurer rival AIA Group Ltd.
The London-based insurance conglomerate, already a leading player in Southeast Asian markets except Thailand, would face off more fiercely with AIA in China, which is the world’s most populous nation and has a growing middle class.
GOALS
The company is building capacity to serve 50 million customers by 2025, Prudential executive director James Turner said at a briefing in Hong Kong on Sunday.
It currently has more than 17 million life customers in the two regions.
While the tide is shifting for many companies in China, as President Xi Jinping (習近平) calls for “common prosperity” and reins in the country’s private-sector players, Prudential believes the regulatory direction is favorable.
“One thing that we noticed is that all of these regulations are starting to come toward our business model,” Turner said. “What we see is regulation to improve the quality of protection products that are sold to our customers. This is a positive thing for our customers and, indeed, for our business.”
The company has been open about its interest in increasing its stake in its China joint venture because of the rapid growth, Turner said.
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