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Ahead of its AGM, Prudential has said it now expects the demerger of Jackson to be completed in the second half of the year, subject to shareholder and regulatory approvals.
The company added that it continues to consider raising equity of $2.5-$3 billion following completion of the demerger in order to enhance financial flexibility and de-lever the balance sheet.
'The US demerger will complete Prudential's structural transformation into a business solely focused on the growth opportunities of Asia and Africa,' said Mike Wells, group chief executive of Prudential. 'In order to enhance financial flexibility and de-lever the balance sheet, as announced in January 2021, Prudential is considering raising new equity of around $2.5-3 billion following the completion of the Jackson demerger.'
He added that the company's preferred route is a fully marketed global offering to institutional investors concurrent with a public offering in Hong Kong to retail investors.
'As an Asia-focused company, the group believes there are clear benefits from increasing both its Asian shareholder base and the liquidity of its shares in Hong Kong. The allocation of any offering will take into account a number of criteria including the interests of existing shareholders. As part of this potential raise, Prudential will also consider a possible preferential offering to Hong Kong resident eligible employees and agents,' he said.
At 9:45am: (LON:PRU) Prudential PLC share price was 0p at 1249p