The insurance arm of Hong Kong tycoon Richard Li's investment conglomerate Pacific Century Group said it will not proceed with its New York listing.
FWD is withdrawing its U.S. IPO, saying it is «considering other alternatives and has determined not to proceed at this time with the offering and sale of the securities,» according to a filing with the Securities and Exchange Commission on Monday.
Last week, «Bloomberg» reported that the Hong Kong insurer plans to sell shares in the city in the first half of 2022.
FWD raised $1.4 billion this month through a placement of new shares with global investors including Apollo Global Management, the Canada Pension Plan Investment Board, the reinsurer Swiss Re, and the Siam Commercial Bank, valuing the company at $9 billion, while the U.S. IPO would have valued it at $13 billion, «Bloomberg» said.
Regulatory Pressure
The move comes as China tightens its grip on overseas listings. Earlier this month, pressured by Chinese regulators, ride-hailing giant Didi announced its decision to delist in New York just six months after a $4.4 billion market debut and shift its listing to Hong Kong.
finews.asia previously noted that regulatory pressures in China could dent the appetite for future overseas IPOs alongside market trading – both key sources of revenue for global banks increasingly dependent on China.
