In the latest development, FWD Group Holdings, controlled by Richard Li Tzar-kai, has decided not to sell a stake, and Li will maintain control of the company. The parent company, Pacific Century Group, has stated that Li is confident about the long-term development of FWD. Despite the delay in FWD's $1 billion Hong Kong IPO, the company has achieved an impressive average annual growth rate of over 23% in the past 10 years. Pacific Century Group will evaluate the timing of an IPO and seek an opportune moment to list the company [667db2c0].
Previously, FWD was considering a stake sale at a valuation of over $10 billion. Global insurance companies, including Sun Life Financial, were reportedly in talks with FWD for a potential tie-up. However, FWD has decided to focus on its IPO plans and maintain control through Pacific Century Group. FWD has attempted to go public three times in Hong Kong and once in New York. The company has raised over $1.83 billion in private placements in 2021 and 2022 [667db2c0].
These updates highlight FWD's strategic decision to prioritize its IPO plans and maintain control of the company, despite the previous considerations of a stake sale. The company's impressive growth rate and ongoing discussions with global insurance companies further underscore its potential in the market [667db2c0].
Meanwhile, Howden, a UK insurance broker, has announced that it will remain private for now but has not ruled out an IPO in the future. During a session at the Financial Times Global Insurance Summit, CEO and founder David Howden mentioned that an IPO could be a possibility for large private equity-backed firms. Howden recently completed a multi-billion refinancing and debt plan. The company has a significant employee ownership, with one-third of the shares held by employees with long-term incentives [9019f893].
The decisions by both FWD Group Holdings and Howden to consider IPO plans while remaining private reflect the potential for growth and expansion in their respective markets. While FWD focuses on the Asian insurance market, Howden operates in the UK insurance sector. These developments indicate the companies' confidence in their long-term prospects and their willingness to explore different avenues for future growth [667db2c0], [9019f893].