(Bloomberg) -- Prudential Plc plans to raise as much as $2.4 billion from its Hong Kong share offering after pricing the stock at a slight discount to its last close in Hong Kong.
Most Read from Bloomberg
How Los Angeles Became the City of Dingbats
School Reopenings Falter as U.S. Kids Near 1 Million Covid Cases
A Jewish Tradition Makes Room for Unconventional Design
The Rise of the Pandemic Dashboard
Berlin Referendum Could Determine the Future of the City's Housing
The London-based insurer is selling up to 130.8 million shares at HK$143.80 apiece, it said in a statement on Saturday. Prudential plans to use proceeds from the offering to redeem existing high coupon debt, with the balance to contribute to investments in Asia and Africa, where Group Chief Executive Mike Wells has said the company will be "entirely focused on long-term structural growth opportunities."
The prospective price represents a discount of 2.6% on the stock's last close in Hong Kong.
The offering comes just over a week after Prudential completed the demerger of its U.S. unit, Jackson Financial Inc, a move that may accelerate its competition with pan-Asia life insurer rival AIA Group. The insurance conglomerate, already a leading player in Southeast Asian markets except Thailand, will face off more fiercely with AIA in China, which is the world's most populous nation and has a growing middle-class.
Prudential's share sale is one of Hong Kong's largest additional offerings of stock this year, giving a boost to a market that has been hit by China's regulatory clampdown. Executive Director James Turner said last week that the regulatory direction is favorable, as it moves to improve the quality of protection products that are sold to its customers.
The company has been open about its interest in increasing its stake in its China joint venture because of the rapid growth, Turner said.
Citigroup Inc., Goldman Sachs Group Inc., CLSA Ltd. and HSBC Holdings Plc are joint global coordinators for the offering. Bank of America Corp., Credit Suisse Group AG, UBS Group AG and UOB Kay Hian are acting as joint bookrunners.
Most Read from Bloomberg Businessweek
A Tiny Piece of Plastic Is Helping Farmers Use Far Less Water
Evergrande Debt Crisis Is Financial Stress Test No One Wanted
The Energy Future Needs Cleaner Batteries
Microsoft and an Army of Tiny Telecoms Are Part of a Plan to Wire Rural America
In Amazon's Flagship Fulfillment Center, the Machines Run the Show
©2021 Bloomberg L.P.