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Billionaire Richard Li’s FWD Files For $3 Billion IPO In U.S.

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Hong Kong tycoon Richard Li’s insurance firm FWD has filed confidentially for an initial public offering in the U.S.

PCGI Intermediate, which is FWD’s holding company, said on Thursday that it has submitted a draft registration statement to the U.S. Securities and Exchange Commission for an IPO without specifying the size or timing of the offering.

FWD has reportedly been considering raising about $3 billion through an IPO in the U.S. or Singapore that would allow it to maintain its dual-class shareholding structure. It was also said to be considering a merger with a special purpose acquisition company (SPAC) in the U.S.

Established in 2013, FWD is the insurance business controlled by Li’s unlisted Pacific Century Group. It was formed when Li acquired ING Groep NV’s insurance and pension units in Hong Kong, Macau and Thailand for $1.8 billion in 2013.

Since then, FWD has expanded rapidly across the region through a series of acquisitions. It now has operations in Hong Kong, Macau, Thailand, Indonesia, the Philippines, Singapore, Vietnam, Japan, Malaysia, and Cambodia. The insurer says it has 9.8 million customers and $62.6 billion in assets.

Swiss Re AG became a minority shareholder of FWD when it acquired a 12.3% stake in 2013 for $425 million. FWD’s other investors include Singapore wealth fund GIC, and Chinese private equity firm Hopu Investments.

Li was ranked No. 22 on the Hong Kong Rich List in February this year. Although his father, Li Ka-shing was ranked No. 1, the younger Li has established a separate business empire with interests that span financial services, telecommunications, media, technology and property. His current net worth is estimated at $4.4 billion.

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