British-based insurance firm Prudential has fully launched its long-awaited rights issue of US$21 billion (S$29.2 billion) and will be aiming for a secondary listing in the Hong Kong and Singapore stock exchanges on May 25.
This will allow investors from HK and Singapore to purchase into Prudential shares in their respective home currencies and preferred timezone starting next Tuesday.
Prudential also announced the terms of its rights issue, which will finance its proposed acquisition of AIA Group, the Asian life insurance unit of its rival American International Group (AIG).
According to the insurer, it would provide 11 shares for every two existing shares that an investor owns at 104 pence (S$2.09) each.
The rights issue and the AIA deal will be tabled on June 7 during a shareholders’ meeting and requires at least 75 percent backing from its shareholders.
Based on the latest timetable presented by Prudential, investors from Singapore should absorb the Prudential shares early next month to avail for the rights issue offer.
With Prudential being a reputable brand name, industry experts anticipate the listing in HK and Singapore to be popular among investors.
However, the present debt crisis in euro zone may dampen the current investor appetite for new equity.
“Prudential is set to be the largest insurer worldwide following the acquisition, and this may lead to a price premium,” said Ng Kian Teck, an investment analyst from SIAS Research.
Prudential also said that its company and AIA Group will be combined into a new firm called New Prudential.
“We are creating the leading life insurer in the fastest growing region in the world, giving us greater exposure to the highly attractive long-term growth offered in Asia,” said Mr. Harvey McGrath, chairman of Prudential.