Anheuser Busch Inbev Preps Biggest IPO Of 2019 In Hong Kong
Beer giant and Budweiser parent company Anheuser Busch Inbev NV (NYSE: BUD) is looking to raise $9.8 billion through a public offering of its Asia-Pacific business, CNBC reported Tuesday.
What Happened
Inbev is set to list shares of its Budweiser Brewing Company APAC, a business unit which consists of more than 50 beer brands that sell in the Asia-Pacific region, CNBC said.
The company is looking to sell 1.6 billion primary shares on the Hong Kong exchange at a price of HK$40-$47 ($5.13-$6.02).
Net proceeds on the deal are expected to be at least $8.3 billion and up to $9.8 billion. Even at the low end, Inbev would have the distinction of overseeing the largest IPO offering globally year-to-date.
The IPO pricing would value Budweiser Asia at 16 to 18 times EV/EBITDA, CNBC said.
Why It's Important
Investors will be looking at the beer-themed IPO in Hong Kong, as it has implications across other sectors, according to CNBC.
The IPO could serve as a potential barometer for other listings in Hong Kong, including tech giant Alibaba Group Holding Ltd (NYSE: BABA), which is considering a $20-billion IPO of its stock in Hong Kong.
What's Next
Inbev is expected to officially price its IPO in New York on July 11; if all goes according to schedule, the stock could start trading in Hong Kong on July 19, according to CNBC.
The company's NYSE-listed stock was trading higher by 2.33% at $90.47 at the time of publication Tuesday.
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