Prudential mulls HK or Shanghai listing

Oct. 21, 2009 (China Knowledge) - U.K.-based insurer Prudential is considering a separate listing in Hong Kong or Shanghai as part of its efforts to raise capital and underline its regional ambitions, said people familiar with the matter, the Financial Times reported.

The sources said that the British insurer is making a preliminary assessment of the possible benefits of a public trading on either stock exchange after it saw strong demand for a US$750-million hybrid capital-raising in Asia this year.

According to people close to the situation, Prudential's CEO Tidjane Thiam discussed the issue of a possible listing on either bourse during his business trip to Hong Kong this month.

Mr. Thiam said earlier that Asia would be a good source of capital as there is so much wealth being created in the region.

In October 2000, Prudential set up a joint venture in Guangzhou with China's CITIC Group. The JV, namely CITIC-Prudential Life has a registered capital of RMB 1.98 billion and is equally held by the two parties. The JV had about 18,000 employees in 30 Chinese provinces and cities by the end of 2008. However, it has been posting losses since its establishment, and estimated net loss in 2008 was RMB 200 million, according to an earlier report from China Knowledge.