Billionaire Richard Li's FWD Group dipped 0.5% in Hong Kong market debut.

FWD Group, a regional insurer founded by Hong Kong billionaire Richard Li Tzar-kai, aims to use Hong Kong as a springboard to expand its business in the region after completing its HK$3.47 billion (US$442 million) fundraising in the city.

The firm’s initial public offering (IPO) will help improve its capital structure and serve a bigger pool of clients in the coming years as demand for insurance protection increases with wealth creation, according to CEO Huynh Thanh Phong.

“A successful IPO is a very important milestone for us, but it is not the end-game for us,” he said in an interview with the Post on Sunday. “The IPO gives us flexibility in capital management. It supports our vision of building a pan-Asian business that is based in Hong Kong and serves customers across Asia.”

The insurer sold 91.3 million shares at HK$38 each, giving the company a market capitalisation of HK$48.3 billion. About 30 per cent of the IPO shares went to retail investors, tripling the initial allocation to meet excess demand. FWD has an option to sell a further 13.7 million shares through an overallotment to the IPO managers.