Billionaire Richard Li’s FWD Group Holdings Ltd. rose in its Hong Kong trading debut, reversing earlier declines, after an initial public offering that raised HK$3.5 billion ($442 million).
The insurer’s stock climbed as much 2.1% to HK$38.80 on Monday, reversing a drop of as steep as 2.5%. It was at HK$38.40, up 1.1%, at the midday break.
“It’s been a long journey,” FWD chief executive officer Huynh Thanh Phong said in a Bloomberg TV interview. “Hong Kong, as you can see, is back in a big way, and we’re extremely happy to be part of that comeback story post-COVID.”
The city’s stock benchmark, the Hang Seng Index, has risen about 20% for the year. Insurers have been particularly hot lately, with shares of AIA Group Ltd. and Prudential Plc each rising at least 35% since their April lows.
Richard Li, who founded the company in 2013, owns a 66.5% stake in FWD through various corporate entities. His stake in FWD accounts for two-thirds of his $6.1 billion net worth at the IPO price, according to the Bloomberg Billionaires Index.
The insurer plans to use the proceeds to reduce debt, support growth and enhance its digital capabilities.
