Budweiser Asia IPO's Institutional Tranche Is Fully Covered
September 19 2019 - 6:05AM
Dow Jones News
By Joanne Chiu
The Asian unit of Anheuser-Busch InBev SA (ABI.BT) has secured
enough orders for the main part of its initial public offering,
putting it on track for the world's second-largest listing this
year.
Budweiser Brewing Co. APAC is set to price the Hong Kong stock
sale on Monday, ahead of a listing on Sept. 30. It has drawn enough
demand to cover its book, according to a person familiar with the
situation. At the top price, the listing could raise $4.85
billion.
The person said the stock sale to institutional investors was
"more than subscribed." The company previously set a price range of
27 to 30 Hong Kong dollars (US$3.45 to US$3.83) a share. A second,
much smaller tranche of the deal is set aside for individual
investors.
The IPO is a test of investment appetite. As of Thursday's
close, the city's benchmark Hang Seng Index had fallen more than 6%
in the past three months, according to FactSet, with Hong Kong hit
by a summer of protests, and by trade tensions between the U.S. and
China.
Depending on demand, the company could boost the deal's size to
as much as US$7.6 billion. This is Budweiser APAC's second shot at
going public, after halting an earlier attempt in July. Unlike the
first try, this time Budweiser APAC has secured a US$1 billion
pledge from Singapore sovereign-wealth fund GIC Pte. Ltd. to act as
a cornerstone investor.
Write to Joanne Chiu at joanne.chiu@wsj.com
(END) Dow Jones Newswires
September 19, 2019 05:50 ET (09:50 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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