Pru shares struggle on Asia debut

The stock listed in Hong Kong and Singapore for the first time as the UK insurer looks to attract new investors for a 14.5bn share issue that will help fund the AIA deal.

Both listings were down on their opening prices as Prudential's launch became caught up in the latest slump for world stock markets.

There was a further blow for Prudential when the Financial Times said that AIA's chief executive Mark Wilson planned to quit the business in the event of a takeover. He is reported to have told associates that the proposed combination of Prudential and AIA was unworkable.

As well as leaving a hole at the top of the company at a critical time, the revelations add to pressure on Prudential when many investors and analysts are questioning the price tag for the takeover. They also argue that AIA operations will consume cash generated by Prudential's UK arm.

Prudential chairman Harvey McGrath, who was in Hong Kong for the shares debut, said he was confident that the Pru will secure the 75 per cent support needed for its takeover to go through.

He said: "I think the vast majority are very comfortable with the transaction."

The takeover would give Pru around 30 million customers in Asia and see the Asian operation become by far the group's biggest division - contributing around 60 per cent of new business profit.

Chief executive Tidjane Thiam and his colleagues have been working hard to persuade their largest shareholders that the deal is in their best long-term interests.

He said today: "Our listings in Hong Kong and Singapore will provide us with a strong platform from which to continue to take advantage of the significant opportunities across the region.

"These additional listings offer a wide range of investors the chance to invest in Prudential and confirm our increasing focus on Asia."