SINGAPORE - Prudential has announced plans to list on the Singapore Exchange (SGX) to complement its primary listing in Hong Kong.

According to media reports, the secondary listing is part of the insurance firm's strategy to attract investors to its massive US$21 billion ($28.8 billion) rights offer.

The announcement came after Prudential received approval from the Hong Kong Stock Exchange for its primary listing yesterday.

Britain's largest insurer aims to have both listings live before shareholders vote on its US$35.5 billion agreed takeover of AIA, the Asian arm of troubled US insurer American International Group (AIG), media reports said.

The deal will help Prudential become the world's top non-Chinese insurer by market capitalisation, leapfrogging major rivals Allianz and AXA.

The Government of Singapore Investment Corporation, which owns a 0.5-per-cent stake in Prudential, last month signed up to underwrite a multi-billion dollar portion of the rights issue, which will be used in part to help fund the acquisition.

Prudential is expected to almost double its equity capital base at the end of the month.

Mr Gabriel Gan, senior vice-president of equity sales at AmFraser, said Prudential's move will encourage other foreign multinational companies to list on the SGX, even in a primary listing.

But as a secondary listing on the SGX, Prudential's prices here will follow their stock movements in Hong Kong.

A statement from an SGX spokesperson said: "If Prudential chooses to list on SGX, this will further attest to our attractiveness and strength as a listing venue."

TODAYonline | Business | Prudential plans secondary listing on SGX