Prudential Plans to Raise Up to US$2.89 Billion in Hong Kong Share Offer
September 19 2021 - 6:12PM
Dow Jones News
By P.R. Venkat
Prudential PLC is planning to raise up to 22.49 billion Hong
Kong dollars ($2.89 billion) by issuing new shares as the insurer
looks to redeem high-coupon debt due in six months and invest for
growth.
The U.K. insurer is planning to sell 130.78 million new shares
in the Hong Kong offer and has set a maximum price of HK$172 per
share, Prudential said Monday.
The final price is expected to be determined on Sept. 25 and the
new shares would start trading on the Hong Kong Stock Exchange on
Oct. 4.
"The board believes that there are clear benefits to the group
and to its shareholders as a whole from increasing its Asian
shareholder base and the liquidity of its shares in Hong Kong,"
Prudential said.
On business prospects, the company said that significant
Covid-19 related restrictions continue in many markets including
Indonesia, Malaysia and Thailand. There also was continuing
uncertainty over the extent and the timing of the reopening of
border between Hong Kong and mainland China.
"Prudential is now entirely focused on long-term structural
growth opportunities in Asia and Africa," Chief Executive Mike
Wells said. "The share offer will maintain and enhance Prudential's
financial flexibility in light of the breadth of opportunities to
invest for growth."
Citigroup, Credit Suisse, BofA Securities are among banks
advising prudential on the offering.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
September 19, 2021 18:57 ET (22:57 GMT)
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