Prudential reveals plans for Hong Kong share offering

Written by Adam Cadle

20/09/2021

Prudential has announced a share offer to raise up to 5% of its issued share capital, or approximately 130.8 million shares, on the Hong Kong Stock Exchange (HKSE) through a concurrent Hong Kong public offer and international placing.

The Public Offer, which consists of up to approximately 6.5 million new shares initially to be issued in Hong Kong, is only available to Hong Kong residents, and includes a preferential offer to eligible employees and agents of up to approximately 1.3 million shares.

Subject to the level of any oversubscription in the Public Offer and pursuant to the clawback mechanism as described in the prospectus to be issued for the Public Offer, the total number of shares available under the Public Offer could be adjusted to up to a maximum of approximately 32.7 million new shares, representing 25% of the total shares initially available in the Share Offer.

The offer price for the Public Offer will be no more than HK$172 per share.

The proceeds are expected to maintain and enhance Prudential’s financial flexibility in light of the breadth of opportunities to invest for growth in Asia and Africa. Specifically, US$2.25bn (approximately HK$17.5bn) is expected to be used to redeem existing high coupon debt, with the remaining net proceeds expected to contribute to Prudential’s central stock of liquidity.

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