Wealthy entrepreneur Richard Li's FWD Group pursues $442 million stock market debut in Hong Kong
Revised Article
FWD Group, helmed by billionaire Richard Li, is steaming ahead with its long-awaited Initial Public Offering (IPO) on the Hong Kong Stock Exchange (HKEX) in 2025. The goal? A whopping HK$3.99 billion (around US$512 million) by selling 91.34 million shares at HK$38 each. With an option to bump up the shares to 105 million through an overallotment option, the full valuation hovers around HK$48.3 billion (roughly US$6.15 billion) [3][5].
Clearly, this valuation mark is a step down from the 2022 ambition of US$10 billion, a nod to more prudent market conditions and some strategic recalibration. The lowered valuation seems to resonate better with the current investor climate and market realities, following previous aborted listing attempts in New York due to regulatory scrutiny and in Hong Kong because of global market turbulence [1].
FWD Group's renewed listing plan coincides with a string of impressive financial results. Q1 2025 revenue hours a 55% increase in new business contractual service margin to an impressive $465 million and a 46% surge in annual premium equivalent to $679 million. The growth is derived from expanding emerging markets in Southeast Asia, coupled with stable figures in Japan and Hong Kong/Macau [1][3].
The IPO proceeds will be channeled towards strengthening the company's capital base, slashing debt, funding growth initiatives, broadening customer and channel reach, and boosting digital capabilities [1][3].
The IPO calendar allows investors to place orders from June 26 to July 2, 2025, with trading anticipated to kick off on July 7 under the stock code 1828. Richard Li Tzar-kai, the executive director, will continue to hold a commanding 66.45% stake post-listing. The offering is backed by Morgan Stanley, Goldman Sachs, CMB International, and HSBC, serving as sponsors and lead managers [3].
In a nutshell, FWD Group’s Hong Kong IPO is back on track with a more modest target valuation of US$6.15 billion, a reflection of both improved company fundamentals and a calculated risk-taking stance in response to earlier listing delays [1][3].
The steep valuation of FWD Group's IPO is estimated to be around $6.15 billion, indicating a significant presence in the field of finance and business. The proceeds from the IPO will be strategically allocated to strengthen the company's financial status, invest in growth initiatives, broaden customer reach, and enhance digital capabilities, thereby expanding their business operations.
