(Alliance News) - Prudential PLC on Thursday said it expects to receive about GBP1.77 billion from Hong Kong public offer and international placing.
The London-based insurer and asset manager on Monday last week said it is planning to issue shares worth 5% of its share capital. The money will be used to redeem USD2.25 billion high-coupon bonds, which Prudential said will improve its financial flexibility to invest in Asia and Africa following the sale of the US business this year. At the same time, it said it wanted to widen its Asian shareholder base.
The new shares were priced at HKD143.80 each, equivalent to GBP13.52. The 6.5 million shares initially available under the public offer have been over-subscribed, the FTSE 100-listed company said.
Prudential shares were broadly flat at 1,447.00p in London on Thursday morning, giving the company a market capitalisation of about GBP37.82 billion. Its Hong Kong-listed shares were up 0.1% at HKD150.20.
The net proceeds from the offer to be received by Prudential, after deduction of the underwriting fees and other estimated expenses payable in connection with the share offer, are estimated to be HKD18.5 billion or GBP1.77 billion.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Prudential (PRU)