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Prudential Seeks Hong Kong Listing Before Capital Increase

(THE WALL STREET JOURNAL) - U.K. insurer Prudential PLC said it is planning to list its shares in Hong Kong ahead of a daunting $20 billion rights issue planned for May, a move aimed at enlisting Asian support for an offering that is key to the U.K. insurer’s ambitious $35.5 billion purchase of AIA Group Ltd. from American International Group Inc.

Initially, Prudential sought a Hong Kong listing after the purchase of AIA was completed, but the company moved it forward after discussions with Hong Kong authorities, according to Prudential spokesman Edward Brewster. “We’ve had productive discussions with the Hong Kong Stock Exchange over the last seven days,” Mr. Brewster said. “We’ve always planned to list in Hong Kong as soon as possible after the transaction, but now are able to set out a work plan to get a listing achieved much more quickly.”

A spokesperson at the Hong Kong Stock Exchange said the exchange preferred not to comment on listing plans for individual companies.

Prudential PLC is unrelated to Prudential Financial Inc. of the U.S.

The so-called listing by introduction will be alongside Prudential’s primary listing in London, and means that no new shares will be offered, the company said.

Prudential’s deal for AIA, a transformative move to focus the U.K.-based insurer squarely on Asia’s growth markets, has nonetheless caused some disquiet over the amount of money the company is seeking from its existing shareholders to fund the purchase.

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