BREWER AB INBEV TO LIST ASIA-PAC BUSINESS IN WORLD’S BIGGEST IPO THIS YEAR
By Staff Reporter
Brewing giant Anheuser-Busch InBev NV (AB InBev) is seeking to raise up to USD9.8 billion by listing its Asia-Pacific business in Hong Kong on 19 July, making it the world’s largest initial public offering this year surpassing Uber.
The company’s Asia Pacific arm, with a portfolio of more than 50 beer brands include Stella Artois and Corona, is planning to sell 1.6 billion primary shares at between HKD40 and HKD47 (USD5.13 and USD6.02) per piece, according to the IPO term sheets.
Even at the low end of the price range, the IPO will be the biggest globally this year, bigger than the USD8.1 billion raised earlier by Uber in New York.
The deal will be a welcome boost to Hong Kong, which is lagging behind the New York Stock Exchange and Nasdaq in terms of IPOs this year.
The biggest listing in Hong Kong so far this year was that of Chinese securities firm Shenwan Hongyuan HK, having raised USD1.2 billion in April.
The new AB Inbev Asia-Pac share are expected to price in New York on 11 July and the stock will debut in Hong Kong on 19 July according to the term sheet.
The deal will raise between USD8.3 billion and USD9.8 billion and will help the heavily indebted company to reduce its over USD100 billion debt pile following the purchase of rival SABMiller in late 2016.
The company has said the main merit of a Hong Kong listing would be to create a champion in the Asia-Pacific region, where sales are still growing and increasingly wealthy consumers are trading up to higher-margin premium beers.
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