(Bloomberg) — Hong Kong billionaire Richard Li is weighing investing about $200 million in his insurance coverage firm FWD Group Holdings Ltd. as a part of a funding spherical, individuals accustomed to the matter mentioned.
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An funding would assist assist the insurer’s development plans forward of a long-awaited Hong Kong preliminary public providing, which might happen as quickly as 2023, the individuals mentioned. Different traders have additionally proven early curiosity in a fundraising for FWD forward of its itemizing, the individuals mentioned.
FWD’s greenback bond maturing in 2024 rose 1.3 cents on Monday, and is about for essentially the most each day positive factors in about two weeks.
Phrases of the funding spherical are nonetheless into consideration and particulars equivalent to the dimensions might change, the individuals mentioned, asking to not be recognized as a result of the matter is personal. A consultant for FWD declined to remark.
FWD refiled an software for a Hong Kong IPO in September in opposition to a backdrop of market volatility, giving the agency extra time to organize for the first-time share sale. It might search to boost about $1 billion from the IPO, Bloomberg Information has reported.
The insurer’s worth of latest enterprise rose 24.6% yr over yr to $405 million within the first half of 2022, on a relentless trade fee foundation, the corporate mentioned on the time. Whereas FWD reported an adjusted lack of $333 million for the six months ended June 30, its working revenue earlier than tax jumped about 111% to $200 million from the identical interval in 2021.
FWD a yr in the past raised greater than $1.6 billion in personal placements with traders together with an insurer backed by Apollo World Administration Inc. The placements had been set to worth the corporate at about $9 billion, which might suggest about 1.2 to 1.3 occasions its embedded worth, individuals accustomed to the matter mentioned on the time.
–With help from Alice Huang.
(Updates in third paragraph with bond response.)
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