Budweiser Brewer To Relaunch Slimmer, $4.84 Billion Asian IPO
September 17 2019 - 3:51AM
Dow Jones News
By Joanne Chiu and P.R. Venkat
The world's largest brewer is taking a second shot at listing
its Asian business, seeking to raise up to $4.84 billion in Hong
Kong, even as the city reels from a summer of protests and from
trade tensions between the U.S. and China.
The regional unit of brewing behemoth Anheuser-Busch InBev SA
will begin taking orders Wednesday for its Hong Kong initial public
offering, ahead of a planned listing on Sept. 30, according to
people familiar with the matter.
The unit, Budweiser Brewing Co. APAC, plans to sell 1.26 billion
new shares at an indicative range of 27 to 30 Hong Kong dollars
(US$3.45 to US$3.84), raising 34 billion to 37.9 billion Hong Kong
dollars (US$4.35 billion to US$4.84 billion), according to the
people.
In July AB InBev shelved an earlier attempt to list the
business, after seeking to raise nearly US$10 billion, at a
valuation of up to US$63.7 billion. It said market conditions were
partly to blame, but some prospective investors and analysts
pointed to its high valuation aspirations.
It is now marketing a smaller, faster-growing business that is
more focused on China and other emerging markets, after selling its
Australian unit--which had been part of the original listing
plan--to Japan's Asahi Group Holdings Ltd. for US$11.3 billion.
The revised stock sale would be the world's second-largest IPO
this year, after ride-hailing giant Uber Technologies' US$8.1
billion market debut in New York, according to Dealogic.
The IPO implies a market value for the business of US$45.6
billion to US$50.7 billion, according to a summary of the deal's
terms seen by The Wall Street Journal, and implies a price of 33.8
to 37.5 times the earnings management estimates the business could
make next year. AB InBev could increase the deal's size to as much
as US$7.4 billion if demand is strong, the summary showed.
Social unrest, the U.S.-China trade dispute and slowing Chinese
growth are threatening to tip Hong Kong's economy into recession.
Sometimes-violent protests have disrupted flights and road
transport, denting the city's image as a safe location and an
international financial hub. The benchmark Hang Seng stock index
fell in late July and August, but has since rebounded somewhat,
leaving it basically flat for the three months to Monday's
close.
Many issuers are testing investors' appetite in both the equity
and bond markets in Hong Kong. The city's exchange operator also
made an unsolicited US$36.6 billion approach to buy the London
Stock Exchange, which the board of its U.K. rival turned down.
Last week, Chinese biotechnology company Shanghai Henlius
Biotech Inc. kicked off an IPO in Hong Kong. Other prospective
issuers include consumer lender Home Credit NV, which is looking to
raise up to US$1.5 billion, and Chinese sportswear retailer
Topsports International Holdings Ltd., which aims to raise about
US$1 billion.
Julie Steinberg contributed to this article.
Write to Joanne Chiu at joanne.chiu@wsj.com and P.R. Venkat at
venkat.pr@wsj.com
(END) Dow Jones Newswires
September 17, 2019 03:36 ET (07:36 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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