Prudential Makes HK Debut as Market Tumbles

British insurance giant Prudential picked a bad day to debut on the Hong Kong Stock Exchange as the Hang Seng Index fell 3.5%, says the South China Morning Post.

 

According to the Post, Prudential listed in Hong Kong to attract rich Chinese investors to participate in its US$21 billion rights issue. The company needs funding to help finance a US$35.5 billion planned acquisition of American International Assurance, the Asian subsidiary of beleagured U.S. insurer American International Group.

 

But the company got a cool reception from investors, as it closed at HK$57.20 - 4.2% below its closing price in London on Monday.

 

"The liquidity is drying up," Francis Lun Sheung-nim, a general manager at Fulbright Securities told the Post. "Prudential will have to work very hard to drum up interest."

Suggested Articles

Some of you might have already been aware of the news that Questex—with the aim to focus on event business—will shut down permanently all media brands in Asia…

Some advice for transitioning into an advisory role

Global risks are intensifying but the collective will to tackle them appears to be lacking. Check out this report for areas of concern