Prudential (LSE: PRU) got off to a healthy start Monday, following on from a losing streak last week. The Prudential share price ended Friday down 3.7% on the week, though it had dropped even lower a few days before. At one point, the stock was down a whopping 8%, before coming back.
It happened after the insurance giant revealed plans for a new listing on the Hong Kong stock exchange. The new issue is for up to around 130.8 million new shares, representing up to 5% of the company’s issued share capital. The news, it seems, didn’t please the UK stock market.
The revelation came at a time when markets were falling amid Chinese fears, mind. In particular, investors have been concerned Chinese company Evergrande could go bust. It’s the most indebted real estate developer in the world. So perhaps it wasn’t the most fortuitous time to release news about an expansion into the Chinese sphere?
Prudential share price
Anyway, the Prudential share price has been regaining its losses, and that continued Monday. The insurer has now revealed the offer price of the new Hong Kong equity issue. It’s been set at HK$143.8 per share. At the current exchange rate, that’s the equivalent of around 1,348p. It represents a relatively modest discount of 3% to the London closing price on Friday.
At the time of writing, Prudential shares are up 1.9% on the day at 1,418p. However, they did hit 1,443p in early trading, for a quick morning rise of 3.7%.