Prudential should trade near London close of £5.30 or S$10.75 in HK/S’pore debut today. Shares start trading in HK, Singapore today by way of introduction as British insurance giant taps region to help fund US$21bn takeover of Asian insurer AIA. Investors thinking about buying Prudential shares need to be aware of deeply discounted 11-for-2 rights issue plan, priced at £1.04 each, 80.4% discount to last close.
There are some investor concerns about Prudential mega-deal's price tag (which is larger than its own market cap) and its ambitious expansion plans in Asia; which may create a large financing burden.
Prudential be traded in board lots of 500 shares, denominated in USD. Price will take off from London''s last closing price of £5.30 (US$7.65). As Prudential will also make debut in Hong Kong, traded in HKD, performance in Singapore likely to take cue from HK, with shares being fungible.
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