The UK life insurer confirmed its intention to follow the demerger with a retail offering of shares in Hong Kong to raise both its Asian shareholder base and the liquidity of its shares on the Hang Seng market.
A total raise of between US$2.5bn-3bn remains the aim, with a global offering to institutional investors also part of the plan.
The life insurer’s Asian business, which will be the core of the ongoing part once the demerger completes, increased operating profits by 13% to US$3.7bn in the year to end-December 2020, with group underlying profits 4% ahead at US$5.5bn.
Prudential demerged its UK-based fund management arm M&G in 2019 and “These two transactions constitute the largest structural change in Pru’s 172-year history,” chief executive Mike Wells told reporters.
Canadian bank RBC said yesterday that the demerger would highlight how undervalued Pru’s Asian businesses are compared to peer AIA.
As well as traditional markets such as Hong Kong said there were sizeable opportunities in Myanmar, Vietnam, the Philippines, Cambodia and Laos.
Prudential said it would pay a second interim dividend of 10.73c per share and a total dividend of 16.10c per share.
Shares rose 1% to 1,498p.
— adds share price —