Billionaire Richard Li’s FWD Group Holdings made a strong start on the Hong Kong Stock Exchange on Monday. After initially dropping as much as 2.5%, the insurer’s shares bounced back, ending the day up 1.1% at HK$38.40. The initial public offering raised HK$3.5 billion, or about $442 million.
This marks a significant moment for Li, the son of well-known Hong Kong tycoon Li Ka-shing, and founder of FWD in 2013. The company had previously planned to go public in New York in 2021, but those plans were halted due to regulatory questions. Attempts to list in Hong Kong were delayed as the city’s IPO market struggled.
With Hong Kong’s equity markets now recovering, Li took advantage of the chance to raise funds for the core of his business empire. So far this year, Hong Kong has seen a strong comeback, with IPOs and follow-on offerings bringing in $37.4 billion — a huge jump from last year’s $5.1 billion during the same period. The city’s main stock index, the Hang Seng, has risen about 20% this year.
FWD’s CEO Huynh Thanh Phong expressed his excitement about the timing, calling it a “long journey” and saying Hong Kong’s markets are “back in a big way.” Insurers like AIA Group and Prudential have also seen their shares gain since April, showing renewed investor interest in the sector.
Still, some analysts remain cautious. Criss Wang from Smartkarma pointed out that while FWD’s shares look cheap compared to book values, worries about potential impairments mean it trades at a lower valuation than some local peers.
Richard Li owns 66.5% of FWD through various companies. According to the Bloomberg Billionaires Index, his stake in FWD makes up about two-thirds of his $6.1 billion net worth at the IPO price.
The funds raised will help FWD pay down debt, fuel growth, and boost its digital capabilities. Monday’s trading rebound shows investor confidence in Li’s company and Hong Kong’s improving market mood.