Prudential evaluating listing of ICICI Prudential Asset Management, shares surge
By Michele Maatouk
Date: Wednesday 12 Feb 2025
(Sharecast News) - Prudential said on Wednesday that it was evaluating a potential listing of ICICI Prudential Asset Management, its joint venture with Indian financial services group ICICI Bank.
This would involve the partial divestment of its shares, subject to market conditions, requisite approvals and other considerations.
Prudential said that following completion of the potential divestment, net proceeds would be returned to shareholders.
It said a further update will be provided "at an appropriate time".
Prudential noted that India is a strategically important market for the group, with "compelling" growth prospects.
"We will continue to explore opportunities to grow our businesses in the market," it added.
Prudential shares closed up 7.1% at 731p.
Dan Coatsworth, investment analyst at AJ Bell, said: "The sleeping giant is finally waking up. Shares in Prudential perked up after saying it might offload some of its 49% stake in ICICI Prudential Asset Management, its joint venture with Indian financial services group ICICI Bank, via a stock market listing.
"Investors are clearly hoping the assets will be worth more as a standalone entity than as part of the broader Prudential group. A promise to return any shareholders proceeds rather than reinvest them in the business also got the market excited.
"Prudential's shares had hit a 13-year low in January, despite a major overhaul of its corporate structure which has seen the firm spin-off UK fund management giant M&G and demerge its US operation Jackson Financial. The strategy to focus on life and health insurance, and savings products across Asia and Africa is yet to win universal approval, even if Covid and the economic woes of China and Hong Kong may have had a lot to do with that.
"Prudential has two investors on its shareholder register with an activist approach: Harris Associates and CPP Investment Board. It's possible they may have put pressure on the company to realise hidden value through asset disposals. Last year, there was chatter that Prudential could sell a $3 billion minority stake in its Singapore asset management business, Eastspring, implying the group is looking at all options to get investors back on side."
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