27th Sep 2021 08:33
(Alliance News) - Prudential PLC on Monday said it expects to raise HKD18.5 billion, about USD2.37 billion, from its Hong Kong share offering.
The London-based insurer and asset manager last Monday announced it is planning to issue shares worth 5% of its share capital. The money will be used to redeem USD2.25 billion high-coupon bonds, which Prudential said will improve its financial flexibility to invest in Asia and Africa following the sale of the US business this year. At the same time, it said it wanted to widen its Asian shareholder base.
The new shares will be priced at HKD143.80 each, equivalent to GBP13.52. That price was first reported by Bloomberg News on Friday last week. Earlier last week, Prudential had said the shares would be sold for a maximum of HKD172 each.
Prudential shares were up 2.0% to 1,421.800p in London on Monday morning. Its Hong Kong-listed shares were up 2.9% to HKD152.00, recovering some of last week's sell-off driven by the Evergrande debt crisis. They're down 4.1% from their HKD157.80 closing price on September 17.
"Our share offer allows investors to join us on our journey as we execute our strategy which we believe will result in long-term delivery of future shareholder returns through value appreciation, with a focus on achieving long-term double-digit growth in embedded value per share," Prudential Chief Executive Mike Wells said on Monday.
By Ivan Edwards; [email protected]
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