Insurance giant Prudential will roll out shares available to retail investors in Hong Kong as part of its shift in focus towards Asia.
The firm is looking to raise between $2.5bn and $3bn (£2.1bn, €2.5bn).
It will keep its corporate headquarters in the UK but will reduce its London headcount as some of the 200 staff will be moved to Hong Kong.
The change in strategy follows Prudential’s decision to split from its US arm Jackson in March 2020, which is expected to complete by the end of May 2021.
Michigan-based Jackson specialises in annuities, and once the demerger is finalised, Prudential shareholders will also receive shares in the US insurer.
Prudential will retain a 19.9% stake in the American company, which will then be reduced to 10% within a year.
‘Clear benefits’
The insurer said: “Prudential believes that there are clear benefits to the group, as an Asian focused company, of increasing its institutional ownership in Asia and enhancing the liquidity of its ordinary shares in Hong Kong.
“As a result, its preference is to raise new equity through a fully marketed global offering to institutional investors concurrent with a public offering in Hong Kong to retail investors, to be undertaken after the Jackson demerger, subject to market conditions.
“The group believes that there is potential for substantial value creation for all shareholders through the transformation of Prudential into a business purely focussed on profitable growth in Asia and Africa.”
