Hong Kong tycoon Richard Li is looking to invest around $200m in his insurance firm Fwd Group Holdings, reported Bloomberg citing people privy to the development.

This investment, which forms part of a funding round, will enable the insurer to implement its growth plans before its initial public offering (IPO) in Hong Kong.

The listing is expected to take place next year.

Other investors have also expressed interest in FWD’s fundraising prior to its IPO, according to the people.

Deliberations are on regarding the fundraise terms, and details including the size could be revised.

This year in September, the insurer refiled an application for the Hong Kong listing amid market turbulence, which will offer the firm more time for preparation.

The insurer aims to rake in around $1bn from the IPO.

Previously, FWD had planned to raise up to $3bn through a listing in the US. However, it hit regulatory roadblock in the country.

FWD’s new business value increased 24.6% to $405m in the first half of this year compared with the same period a year ago.

The company posted an adjusted loss of $333m in the first six months of 2022, while its pre-tax operating profit surged 111% year-on-year to $200m.

One year ago, the insurer gathered over $1.6bn in private placements from investors. With these placements, it attained a valuation of around $9bn.