FWD Group, an insurer backed by billionaire Richard Li, plans to raise HK$3.47 billion (US$442 million) in an initial public offering (IPO) on the Hong Kong Stock Exchange.

According to a regulatory filing on June 26, 2025, the company is offering 91.3 million shares at HK$38.00 (US$4.84) each.

This values FWD at HK$48.298 billion (US$6.15 billion).

Mubadala Capital and a subsidiary of T&D Holdings have committed US$150 million and US$100 million respectively, with trading set to begin on July 7, 2025.

The IPO includes a greenshoe option for 13.7 million more shares, potentially boosting proceeds by US$67 million for capital, debt reduction, and digital expansion.

This is FWD’s third IPO attempt after scrapped listings in New York (2021) and Hong Kong (2022), despite raising US$1.8 billion privately at a US$9 billion valuation.

FWD, owned by Pacific Century Group, turned a US$10 million profit in 2024 after a US$717 million loss in 2023, amid rising IPO activity in Hong Kong this year.

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🔗 Source: Reuters

🧠 Food for thought

1️⃣ FWD’s valuation journey reflects broader challenges in Asian insurance IPOs

FWD’s current IPO valuation of $6.15 billion represents a significant reduction from previous attempts that targeted valuations of around $9-10 billion in 2021-2022 1.

This downward adjustment follows a pattern seen across the insurance sector where companies face challenges in meeting initial valuation expectations amid regulatory scrutiny and market volatility.

The company’s third attempt at going public comes after shelving plans for a New York IPO in 2021 due to U.S. regulatory concerns about China ties, followed by postponing a Hong Kong listing in 2022 when Hong Kong’s IPO activity dropped by 90% in the first quarter 2.

Despite securing significant private funding of $1.8 billion in 2021-2022, the current valuation represents a recalibration to market realities, demonstrating how regulatory hurdles and timing can dramatically impact public market valuations.

The presence of cornerstone investors Mubadala Capital ($150 million) and T&D Holdings ($100 million) signals institutional confidence despite the reduced valuation, providing stability that many Asian financial IPOs have lacked in recent years 1.

2️⃣ Market challenges in Southeast Asia pose material risks to FWD’s growth strategy

FWD’s IPO prospectus specifically mentions risks from U.S. tariffs affecting customers in Vietnam, Thailand, and Indonesia – three markets facing documented economic challenges that could impact insurance growth 3.

Vietnam’s life insurance market is projected to contract by 1.3% in 2025, following declines of 12% in 2023 and 5.7% in 2024, driven by irregularities in bancassurance sales and broader economic challenges 45.

Thailand’s insurance sector is experiencing modest growth of 2-3% in 2025, significantly lower than historical rates, with challenges from medical inflation averaging 8-10% annually 67.

FWD Indonesia has faced financial difficulties, with Fitch reporting the company’s net losses surged to IDR1.8 trillion in 2023 and its risk-based capital ratio declined from 362% in 2022 to 259% in 2023 8.

These market-specific challenges directly impact FWD’s performance, as evidenced by the company’s Q1 2025 results showing weaker performance in Thailand and Cambodia while other regions delivered strong growth 39.

3️⃣ Richard Li’s strategic pivot from acquisition-led growth to operational excellence

FWD was founded in 2013 through Richard Li’s acquisition of ING’s pension and insurance businesses in Thailand and Hong Kong for $1.2 billion, establishing a pattern of growth through strategic acquisitions 10.

The company’s return to profitability in 2024 ($10 million profit versus $717 million loss in 2023) demonstrates a shift from pure growth to operational efficiency, reflecting a maturing business model after a decade of expansion.

FWD is now strategically pivoting toward higher-margin products and customer segments, including protection-focused policies, unit-linked insurance, and products for high-net-worth individuals 18.

The company introduced 10 new products in Q1 2025 alone, including a high-net-worth indexed universal life insurance policy, indicating an intensified focus on product innovation rather than just market expansion 3.

Recent FWD developments

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