FWD Group, the Asian insurer backed by billionaire Richard Li, is considering a listing in Singapore or a combination with a US-listed acquisition vehicle in order to maintain a dual-class shareholding structure, according to people familiar with the situation.
FWD has been working towards a Hong Kong IPO of up to US$3bn in mid-2021, IFR reported in September. That option, however, may not be compatible with its intended capital structure, the people said.
Hong Kong’s listing rules only permit weighted voting rights for innovative companies. FWD does not fit fully the exchange’s definition of that category and is now trying to resolve the issue with the stock exchange, said the people.
FWD is also considering other listing venues, including Singapore, where the exchange also allows dual-class share listings but has no requirements around the type of companies that are eligible for the structure, said the people.
A US listing, likely in the form of a merger with a special purpose acquisition company (SPAC), is another option under consideration, said other people with knowledge of the matter.
Richard Li and billionaire Peter Thiel have raised about US$900m from two US-listed, Asia-focused SPACs under the Bridgetown brand since last October, taking advantage of the global SPAC frenzy.
A FWD Group spokesman declined to comment. A spokesman for Hong Kong Exchanges and Clearing declined to comment on individual cases.
FWD appointed Goldman Sachs, JP Morgan and Morgan Stanley as sponsors on its Hong Kong IPO, with HSBC as a joint global coordinator, IFR reported in September.
JP Morgan is no longer working on the transaction.
Founded in 2013, FWD is the insurance business of investment company Pacific Century Group. Swiss Re Group is a minority shareholder.
According to FWD’s website, it has US$56.6bn in assets under management and serves markets including Hong Kong and Macau, Thailand, Indonesia, the Philippines, Singapore, Vietnam, Japan and Malaysia.
The fast-expanding insurance group has been on an acquisition spree in recent years. It completed acquisitions of two Hong Kong units of MetLife in July, after acquiring assets in Indonesia, Vietnam and Thailand.