FWD Group Holdings Limited, an Asian insurance company, is considering selling shares among other options after delaying a planned initial public offering (IPO), as reported in a recent news article by Bloomberg.
If a deal proceeds, it is reported that FWD will likely seek a valuation of over $10 billion.
Big global insurance companies such as Toronto-based Sun Life Financial Inc. have shown interest, although talks with Sun Life hit a snag over price, according to Bloomberg sources. However, other insurers with a significant presence in Southeast Asia and Hong Kong have also expressed preliminary interest.
A significant investment from another company could provide an opportunity for long-time shareholders of FWD to sell their shares and exit the company.
Given the uncertain and volatile market conditions, FWD’s original plan to sell shares to the public is unlikely to proceed anytime soon.
Bloomberg reports, “Should a deal go ahead, FWD could use part of the proceeds to reduce debt, while it remains focused on boosting sustainable profitability and growth”.
In May 2023, Bloomberg reported that FWD considered raising funds from private investors before pursuing an IPO in Hong Kong. FWD has attempted to have an IPO in Hong Kong three times now, with the most recent attempt in March 2023.
The firm also had plans to list shares in New York in 2021, potentially raising up to $3 billion, but this plan was cancelled.
This background helps explain why FWD is now exploring other options, such as selling part of the company to another major investor, instead of proceeding with an IPO.
