Pacific Century Group is downplaying the sale of FWD shares, saying the IPO will come at an “opportune time.”

FWD Group Holdings, a Hong Kong-based insurance company controlled by billionaire Richard Li Tzar-kai, said Li would retain his control of the company amid speculation it could face a possible stake sale worth over $10 after a delayed IPO billion US dollars (IPO).

FWD parent company Pacific Century Group issued a statement on Sunday saying it would “not comment on market speculation,” adding that Li would retain his control of FWD and that he was “confident about the long-term development of the business.” company”.

The Asia-based private investment firm said FWD has achieved a compound annual growth rate of over 23 percent over the past decade in new business value, a measure of the present value of future profits from policies issued in a given period.

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Pacific Century Group said it understands that FWD's IPO timeline is of great interest to the market, noting that the subsidiary “should always evaluate the timing of the IPO holistically, in addition to assessing the market environment.”

The parent company also said that “an early IPO without foreseeable benefits” would have a negative impact on FWD's valuation, but an IPO remains an option for the company's development.

It added that it would seek an “opportune time” to list the company, with the aim of maximizing shareholder interests.

The statement came after FWD was reportedly considering a stake sale valued at more than $10 billion earlier this month, after its $1 billion Hong Kong IPO plan was postponed for a second time last September .

Richard Li Tzar-kai attends the graduation ceremony of Shantou University on June 27, 2017 in Shantou, China. Photo: Getty Images

Global insurance companies, including Toronto-based Sun Life Financial, were reportedly in discussions with FWD about a possible merger. If a deal goes through, FWD could use the proceeds to reduce its debt load and increase profitability, Bloomberg reported, citing people familiar with the matter.

Founded by Li in 2013, FWD has attempted to go public in Hong Kong three times, most recently in March 2023. The company also abandoned an IPO plan in New York in 2021.

With over 11 million customers in 10 markets, the company is currently controlled by Li through Pacific Century Group. FWD's other backers include Zurich-based reinsurer Swiss Re and New York-based private equity firm Apollo Global Management. According to its website, FWD raised over $1.83 billion in private placements in 2021 and 2022.