Tycoon Richard Li's FWD considers shifting US IPO to Hong Kong - sources

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10/11/2021 04:36

By Scott Murdoch, Julie Zhu and Kane Wu
    HONG KONG, Nov 10 (Reuters) - Asian insurer FWD Group,
controlled by Hong Kong billionaire Richard Li, is contemplating
shifting its $2-$3 billion share sale from the United States to
Hong Kong, said two sources with direct knowledge of the matter.
    The Hong Kong-based company, which filed confidentially in
June for the New York initial public offering (IPO), is
considering the switch amid delays by U.S. regulators
scrutinising the plan and lacklustre interest from investors,
the sources told Reuters.
    A FWD spokesman declined to comment on Wednesday when asked
by Reuters about a possible change in the listing venue. 
    The insurer has yet to receive the nod from U.S. regulators
for its IPO to go ahead before the end of the year, a timetable
that sources had flagged previously.  urn:newsml:reuters.com:*:nL2N2NZ16T
    One source said the delays had increased concerns that
approval would not be granted, while the second source cited
lukewarm interest from investors.
    The delayed approval process has prompted FWD and its
advisors to consider returning to Hong Kong for its market
debut, the two sources said.
    FWD has faced questions from the Securities and Exchange
Commission on its mainland China ties and has been treated by
authorities as a Chinese business rather than a Hong Kong
entity, said one of the sources and a third person.
    The three sources could not be named as the information has
not yet been made public.

 (Reporting by Scott Murdoch, Julie Zhu and Kane Wu in Hong
Kong; Editing by Sumeet Chatterjee and Jane Wardell)
 ((Scott.Murdoch@thomsonreuters.com;))