According to a Bloomberg report, insurers will use the proceeds to repay existing debt and invest in growth opportunities in Asia and Africa.
After Prudential split with Jackson in the US business last month and the UK acquired M & G in 2019, a large stake was raised, raising concerns about insurers’ commitment to the UK.
Investors were afraid that if Prudential removed the UK list to focus on Hong Kong, it would not be able to invest in a fund focused on the FTSE 100 Index, according to the Daily Mail.
Shore Capital research analyst Abid Hussein told the Daily Mail:
Hussein added that it would be beneficial for Prudential to expand its investor base.
“Issuing shares in Hong Kong is another step towards shifting the focus of the group to growth markets in Southeast Asia,” he said.
However, Prudential’s Chief Financial Officer, Mark Fitzpatrick, has eased concerns about the UK’s withdrawal.
“We will continue to maintain a meaningful presence in London to support the most fluid primary listing and capital market relationship,” he told the Daily Mail.