FWD Group Holdings' (HKG:1828) initial public offering will support a reduction in its financial leverage, improved financial dexterity, and a more balanced capital structure, Fitch Ratings said in a Monday release.

Proceeds from the IPO, including the overallotment option, amounted to HK$3.99 billion.

The rating agency expects the insurance company's consolidated financial leverage ratio to improve if proceeds will be channeled for the redemption of existing debt instruments, Fitch said.

The company may also see a stronger net profit attributable to its shareholders under lower interest costs due to reduced debt, the rating agency said.

Improved financial flexibility will come in the form of wider access to capital markets as a publicly listed company, Fitch said.

The company will also see a better capital mix, with its equity financing option balancing out debt funding, according to Fitch.