Slaughter and May is advising Prudential plc (Prudential) on its equity raise of up to five per cent. of its issued share capital (or up to approximately 130.8 million shares) on the Hong Kong Stock Exchange through a concurrent public offer in Hong Kong (the Public Offer) and an international placing to institutional investors (the Placing) (the Share Offer). The Public Offer, which is only available to Hong Kong residents, includes a preferential offer to eligible employees and agents. Further details regarding the Share Offer are set out in the prospectus for the Public Offer (the Prospectus) which was published on 20 September 2021.
The Share Offer is expected to maintain and enhance Prudential’s financial flexibility in light of the breadth of opportunities to invest for growth in Asia and Africa. The majority of the net proceeds (approximately US$2.25 billion or HK$17.5 billion) from the Share Offer are expected to be used to redeem existing high coupon debt within six months following the date of the Prospectus, with the remaining net proceeds expected to contribute to Prudential’s central stock of liquidity, in order to further increase its financial flexibility.
Applications for the Public Offer shares commenced on 20 September 2021. The Public Offer price and the Placing price are expected to be determined on or around 25 September 2021 and the results of the Share Offer will be announced on 30 September 2021. Dealings in new shares are expected to commence on the Main Board of the Stock Exchange of Hong Kong on 4 October 2021.
Slaughter and May has been working closely alongside Prudential’s in-house legal team, led by Simon Ramage (Director of Group Legal) and Abbe Martineau (Senior Legal Counsel).