Insurance, Fintech & EM-focused Analyst, KT Capital Group, KT Capital Group

Alec Tseung

Insurance, Fintech & EM-focused Analyst, KT Capital Group

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Capital Markets

FWD Group Holdings / Equity Capital Markets

<ul>
<li>Based on HKD 38 offer price per share, FWD has a market capitalization of USD 6.1 billion, assuming the overallotment option is not exercised.</li>
<li>FWD's P/FY'24 pro forma BV represents a significant discount to peers' trading P/FY'24 BV since it has higher-than-peers intangible assets.</li>
<li>P/EV might be a fairer approach as it excludes intangible assets. On this basis, FWD valuation almost has no discount.</li>
</ul>


Based on HKD 38 offer price per share, FWD has a market capitalization of USD 6.1 billion, assuming the overallotment option is not exercised.
FWD's P/FY'24 pro forma BV represents a significant discount to peers' trading P/FY'24 BV since it has higher-than-peers intangible assets.
P/EV might be a fairer approach as it excludes intangible assets. On this basis, FWD valuation almost has no discount.


FWD IPO Valuation: Intangible Assets Is the Key (Vs. Peers)

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/fwd-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:34332:1" rel="noopener">FWD Group Holdings (1828 HK)</a> has launched its IPO to raise US$442 million at HK$38.00 per share. The shares will be listed on 7 July.</li>
<li>I previously discussed the IPO in <strong><em><a href="https://www.smartkarma.com/insights/fwd-group-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:190939" rel="noopener">FWD Group IPO: The Investment Case</a></em></strong>. </li>
<li>The IPO price implies a discount to peers' multiples. A discount is warranted as FWD is smaller than its peers. FWD is fairly valued at the IPO price. </li>
</ul>



FWD Group Holdings (1828 HK) has launched its IPO to raise US$442 million at HK$38.00 per share. The shares will be listed on 7 July.
I previously discussed the IPO in FWD Group IPO: The Investment Case. 
The IPO price implies a discount to peers' multiples. A discount is warranted as FWD is smaller than its peers. FWD is fairly valued at the IPO price. 


FWD Group (1828 HK) IPO: Valuation Insights

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/fwd-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:34332:1" rel="noopener">FWD Group</a>, a pan-Asian life insurer founded by Richard Li, aims to raise around US$442m in its HK IPO.</li>
<li>FWD is a pan-Asia life insurer operating in ten markets including Hong Kong (and Macau), Thailand (and Cambodia), Japan, the Philippines, Indonesia, Singapore, Vietnam and Malaysia.</li>
<li>We looked at the company’s past performance in our previous notes. In this note we talk about the IPO pricing.</li>
</ul>



FWD Group, a pan-Asian life insurer founded by Richard Li, aims to raise around US$442m in its HK IPO.
FWD is a pan-Asia life insurer operating in ten markets including Hong Kong (and Macau), Thailand (and Cambodia), Japan, the Philippines, Indonesia, Singapore, Vietnam and Malaysia.
We looked at the company’s past performance in our previous notes. In this note we talk about the IPO pricing.


FWD IPO - Valuation Down but Its Difficult to Get Excited About It

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/fwd-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:34332:1" rel="noopener">FWD Group Holdings (FWD HK)</a> is looking to raise up to HK$3.99bn (US$508m) in its IPO, valuing the company at HK$48.82bn (US$6.22bn).</li>
<li>Cornerstone investors will take up more than half the base offering and that will delay index inclusion to well into 2026.</li>
<li>
<a href="https://www.smartkarma.com/entities/fwd-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:34332:1" rel="noopener">FWD Group Holdings (FWD HK)</a> could be added to the HSCI Index and Southbound Stock Connect in December. That could bring some buying into the stock from mainland investors.</li>
</ul>



FWD Group Holdings (FWD HK) is looking to raise up to HK$3.99bn (US$508m) in its IPO, valuing the company at HK$48.82bn (US$6.22bn).
Cornerstone investors will take up more than half the base offering and that will delay index inclusion to well into 2026.

FWD Group Holdings (FWD HK) could be added to the HSCI Index and Southbound Stock Connect in December. That could bring some buying into the stock from mainland investors.


FWD Group (1828 HK): Offering Details & Index Entry Timeline

<ul>
<li>
<a href="https://www.smartkarma.com/entities/fwd-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:34332:1" rel="noopener">FWD Group Holdings (FWD HK)</a>, a pan-Asian life insurer founded by Richard Li, now aims to raise around US$500m in its HK IPO.</li>
<li>FWD is a pan-Asia life insurer operating in ten markets including Hong Kong (and Macau), Thailand (and Cambodia), Japan, the Philippines, Indonesia, Singapore, Vietnam and Malaysia.</li>
<li>We looked at the company’s 2018-21 performance in our past notes. In this note, we will talk about the updates since then.</li>
</ul>



FWD Group Holdings (FWD HK), a pan-Asian life insurer founded by Richard Li, now aims to raise around US$500m in its HK IPO.
FWD is a pan-Asia life insurer operating in ten markets including Hong Kong (and Macau), Thailand (and Cambodia), Japan, the Philippines, Indonesia, Singapore, Vietnam and Malaysia.
We looked at the company’s 2018-21 performance in our past notes. In this note, we will talk about the updates since then.


FWD Pre-IPO - PHIP Updates - Growth Slowing, Metrics Evolution Continues

Hong Kong

FWD Group Holdings Limited offers insurance services. The Company provides life insurance, health insurance, and other related products. FWD Group Holdings conducts businesses throughout Hong Kong.

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FWD Group Holdings (1828 HK)

FWD IPO Valuation: Intangible Assets Is the Key (Vs. Peers)

FWD has higher-than-peers intangible assets. Hence, using embedded value might be fairer than book value to assess its valuation vs. peers. On a P...

Alec Tseung

FWD Group (1828 HK) IPO: Valuation Insights

The IPO price implies a discount to peers' multiples. A discount is warranted as FWD is smaller than its peers. FWD is fairly valued at the IPO price.

Arun George

FWD IPO - Valuation Down but Its Difficult to Get Excited About It

FWD Group, a pan-Asian life insurer founded by Richard Li, aims to raise around US$442m in its HK IPO. In this note, we talk about the IPO pricing.

Sumeet Singh

FWD Group (1828 HK): Offering Details & Index Entry Timeline

FWD Group is looking to raise up to HK$3.99bn valuing the company at HK$48.82bn. The low float will keep the stock out of global indices till early...

Brian Freitas

FWD Pre-IPO - PHIP Updates - Growth Slowing, Metrics Evolution Continues

FWD Group Holdings (FWD HK), a pan-Asian life insurer founded by Richard Li, now aims to raise around US$500m in its HK IPO. In this note, we look...

Sumeet Singh

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