BUD - Anheuser-Busch InBev SA/NV
96.97 0.00 (0.00%)
After hours: 4:51PM EDT
| Previous Close | 95.74 |
| Open | 96.22 |
| Bid | 94.35 x 800 |
| Ask | 96.93 x 2200 |
| Day's Range | 96.18 - 97.27 |
| 52 Week Range | 64.55 - 102.70 |
| Volume | 1,433,389 |
| Avg. Volume | 1,588,125 |
| Market Cap | 192.553B |
| Beta (3Y Monthly) | 1.35 |
| PE Ratio (TTM) | 26.14 |
| EPS (TTM) | 3.71 |
| Earnings Date | N/A |
| Forward Dividend & Yield | 2.03 (2.12%) |
| Ex-Dividend Date | 2019-05-07 |
| 1y Target Est | 106.14 |
- Barrons.com
Budweiser Brewer Anheuser-Busch Has Revived Its Hong Kong IPO. The Stock Market Approves.
Budweiser brewer Anheuser-Busch InBev has revived plans to list its Asian business in Hong Kong with a slimmed down $4.84 billion IPO, sending shares higher.
- Bloomberg
AB InBev to Seek Up to $4.85 Billion in Asian Unit IPO
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Anheuser-Busch InBev NV is set to raise as much as $4.8 billion, roughly half of an earlier target, with the revived initial public offering of its Asian unit.About 1.26 billion of Budweiser Brewing Company APAC Ltd. shares will be marketed in Hong Kong at HK$27 to HK$30 each, the company said Tuesday. In July, the brewer shelved a share sale that sought to raise as much as $9.8 billion and agreed to sell its Australian business to Asahi Group Holdings Ltd. for $11.3 billion a week later.The offering has attracted GIC Pte., a Singaporean sovereign wealth fund, as a cornerstone investor with a commitment of $1 billion, the company said. The previous attempt didn’t have such a holding.The return of Budweiser Brewing’s IPO is set to boost the Hong Kong bourse just as ongoing anti-government protests there and trade tensions between U.S. and China are rocking the market. It will also propel Hong Kong past Shanghai to become the world’s No. 3 in terms of first-time share sale volume.Besides helping AB InBev pare down its $100 billion-plus debt pile after its purchase of SABMiller in 2016, the proposed listing may accelerate the beer giant’s goal of creating a local champion in Asia, especially through acquisitions. Budweiser Brewing Chief Executive Officer Jan Craps said the IPO will give the business more flexibility to pursue deals, and that it will focus on areas where it isn’t yet the market leader, in particular southeast Asia.“Hong Kong has a bright future as a financial center,” Craps said at the press conference. “We are here for the long term.”Excluding Budweiser Brewing, companies have raised a total of $10.8 billion through IPOs in Hong Kong this year, according to data compiled by Bloomberg. At $4.8 billion, the brewer’s listing would be the second-largest globally this year, trailing Uber Technologies Inc.’s $8.1 billion U.S. sale in May.“If Budweiser can go public successfully, it will have a positive impact on Hong Kong’s capital markets that would demonstrate there’s good appetite for major listings,” said Edward Au, a Hong Kong-based co-leader of national public offering group at Deloitte China. That would also pave an easier path for upcoming smaller share sales, he said.While AB InBev plans to raise only about about half as much as it sought in July, the Asia unit’s valuation is only marginally lower. Since the original plan was scrapped, the company raised $11.3 billion from the sale of its Australian business that was part of the Asian unit. Adding that total to the new valuation of as much as $50.7 billion brings AB InBev close to the $64 billion it originally targeted.The minimum dividend payout for the Asia unit will be 25%, Craps said. AB InBev will price shares of Budweiser Brewing on Sept. 23, and they will debut on Sept. 30, the company said.JPMorgan Chase & Co. and Morgan Stanley are the joint sponsors for the Hong Kong share sale.(Adds quote from Asia unit CEO in sixth paragraph, detail on dividend in 10th paragraph)\--With assistance from Amy Li, David Ramli, Vinicy Chan, Zhen Hao Toh and Jinshan Hong.To contact the reporters on this story: Carol Zhong in Hong Kong at yzhong71@bloomberg.net;Julia Fioretti in Hong Kong at jfioretti4@bloomberg.net;Thomas Buckley in London at tbuckley25@bloomberg.netTo contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Anne Pollak, Rachel ChangFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Reuters
UPDATE 1-AB Inbev launches second Asia IPO attempt, targets up to $6.6 bln
Anheuser-Busch InBev NV will kick off a second attempt to spin off its Asian business in Hong Kong with the launch on Wednesday of an IPO worth up to $6.6 billion that could be the world's second largest flotation this year. The brewing giant, which in July tried to raise up to $9.8 billion through an initial public offering (IPO) of Budweiser Brewing Company APAC Ltd, said on Tuesday it would offer 1.3 billion shares at between HK$27 and HK$30 ($3.45-$3.83) apiece. Assuming it exercises the option in full at the top end of the price range, the sale could raise up to $6.6 billion before any regular overallotment option is included.
- Bloomberg
Budweiser's Cut-Price Offer Will Win It Some Friends
(Bloomberg Opinion) -- To pull one initial public offering was a misfortune for the beer giant Anheuser-Busch InBev SA. To jettison two would be careless.That’s why the Budweiser brewer isn’t taking many chances with the second attempt to list its Asian operation. AB InBev will start by marketing about 1.26 billion shares of Budweiser Brewing Company APAC Ltd at between HK$27 (U.S.$3.45) and HK$30 each, Bloomberg News reported on Tuesday.This implies that the company will raise between U.S.$4.4 billion and U.S.$4.8 billion. Assuming the offering equates to 10% of the company, the whole business would have an enterprise value of U.S.$44 billion-U.S.$49 billion.There are two reasons why this looks like a more sensible approach than last time, when investors balked at the hefty price tag. First, as my colleague Chris Hughes has noted, the size of the deal — roughly half of what AB InBev was seeking previously — makes it easier to slip down. Second, the valuation looks more enticing. The expected range would represent a 6%-15% discount to Bernstein’s estimate of the business’s enterprise value of $52 billion, so investors would have some hope of snagging a bargain.With the parent company having agreed to sell its high-margin but low-growth Australian business, the remainder of the Asian arm is more focused on China. The country probably contributed about 70% of 2018’s earnings for the slimmer unit, compared with 50% the last time AB InBev tried the IPO of the full business, according to Bernstein.Bloomberg News also reported that the offering had attracted Singapore’s sovereign wealth fund GIC Pte as a cornerstone investor, with a commitment of about $1 billion. That should give other potential shareholders more confidence.The company certainly can’t afford another embarrassing decision to pull the listing. The sale of the Australia division has at least made a dent in the brewer’s gargantuan net debt, which stood at about U.S.$104 billion at the end of June (or 4.6 times earnings). With the Australian sale, the debt-to-earnings ratio should fall to below 4 times by the end of this year. The proceeds from the anticipated Asian listing should make the debt ratio look more manageable still.The IPO would also give AB InBev a valuable acquisition currency. A 10% free float would leave it plenty of firepower for deals, without losing control of the unit. With debt being tamed to some extent, some future acquisitions might start to look appealing.Investors (besides GIC) are yet to decide whether this offering will prove more tempting than the last one, but AB InBev has clearly left more in the glass for them this time around.To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Financial Times
AB InBev cuts ambitions for second attempt at Asian business IPO
Anheuser-Busch InBev has scaled back its ambitions for an initial public offering of its Asian business, with the world’s largest brewer planning to raise about half what it aimed for just two months ago. The company, whose portfolio includes Stella Artois, Budweiser and Becks, said on Tuesday that it would raise up to HK$37.9bn ($4.8bn) selling shares in Hong Kong next week in a move that would value its Asian business Budweiser APAC at as much as $50bn. The second attempt to sell a minority stake in the Asian business comes two months after AB InBev abandoned plans to raise almost $10bn as investors balked at the price.
- Reuters
AB InBev braves Hong Kong turmoil with second Asia IPO attempt
Anheuser-Busch InBev NV will brave jittery Hong Kong markets in a second attempt to spin off its Asian business on Wednesday, aiming to raise up to $6.6 billion in what could be the world's second largest IPO this year. The brewing giant, which in July tried to raise up to $9.8 billion through an initial public offering (IPO) of Budweiser Brewing Company APAC Ltd, said on Tuesday it would offer 1.3 billion shares at between HK$27 and HK$30 ($3.45-$3.83) apiece. The flotation will be a test of investor appetite following anti-government protests that have roiled Hong Kong for nearly four months and have weighed on the stock market.
- Investing.com
Stocks - Kraft, Corning, Anheuser-Busch Fall Premarket
Investing.com - Stocks in focus in premarket trading on Tuesday:
- TheStreet.com
Anheuser-Busch Resumes Asia IPO Plans, Values Budweiser APAC Unit at $50 Billion
Anheuser-Busch InBev launched the second attempt to float its Asia business on the Hong Kong Stock Exchange Tuesday, telling investors it plans to raise up to $6.6 billion.
- American City Business Journals
A-B InBev unit buys canned wine company
Carlton & United Breweries (CUB), the Australian business of Anheuser-Busch InBev, has acquired Riot Wine Co., which officials said is the only company in Australia to sell wine exclusively in kegs and cans.
- Benzinga
Most Cannabis-Infused Beverages Suck, Says One Famed Critic
Ask anyone in cannabis what the future of the industry is and they’ll tell you it lies in the wide world of products beyond buds and joints: from the potential of CBD to revolutionize the beauty and healthcare industry to the gummies and chocolates expanding the popularity of marijuana, cannabis consumption is poised to explode. The beverage industry, fueled by large alcohol-producing corporations like Molson Coors (NYSE: TAP) and Anheuser Busch Inbev NV (NYSE: BUD), is dumping billions of dollars into joint ventures with cannabis producers, hedging their bets in case legal marijuana cuts too deep into their market share. As The Verge reports, cannabis-infused beverages “make up a mere 2 to 3 percent of total sales” in legal adult-use markets, but that hasn’t stopped Anheuser-Busch InBev from putting down $50 million on Tilray Inc (NASDAQ: TLRY), and Constellation Brands (NYSE: STZ) from dropping $4 billion into Canopy Growth Corp (NYSE: CGC).
- Zacks
The Zacks Analyst Blog Highlights: Anheuser-Busch, Tilray, Boston Beer, Constellation Brands and Aphria
The Zacks Analyst Blog Highlights: Anheuser-Busch, Tilray, Boston Beer, Constellation Brands and Aphria
- Zacks
The Zacks Analyst Blog Highlights: Anheuser-Busch, Fly Leasing, GW Pharmaceuticals, Nestl?? and Burberry
The Zacks Analyst Blog Highlights: Anheuser-Busch, Fly Leasing, GW Pharmaceuticals, Nestl?? and Burberry
- Bloomberg
Hong Kong IPOs Rush to Beat the Clock
(Bloomberg Opinion) -- Hong Kong’s IPO market is unexpectedly coming back to life. It may be a brief revival.Companies from Anheuser-Busch InBev SA’s Asian unit to Megvii Technology Ltd. aim to raise more than $10 billion selling shares before the year is out. It’s a turnaround that appeared improbable as recently as mid-August, when the Hang Seng Index erased its gain for the year amid anti-government protests and concerns over weakening global growth.Hong Kong’s benchmark stocks gauge has bounced 8% since Aug. 13, among the best-performing indexes worldwide in that period, as traders bet that China’s government will try to buoy investor spirits in the run-up to Oct. 1, when the country celebrates the 70th anniversary of the founding of the People’s Republic. That’s created a window of opportunity for companies that previously struggled to generate enough investor interest.Budweiser Brewing Company APAC Ltd. is the prime example. The unit of AB InBev, the world’s largest brewer, pulled what would have been the world’s biggest initial public offering in mid-July after failing to draw sufficient demand for the $9.8 billion sale. The company is back with a pared-down $5 billion offering and aims to list by the end of September, Carol Zhong, Julia Fioretti, Jinshan Hong and Crystal Tse of Bloomberg News reported last week, citing people familiar with the matter.The brewer is seeking to list minus its Australian operations, which the company agreed to sell to Asahi Group Holdings Ltd. for $11.3 billion soon after withdrawing its IPO in July. That hived off a slower-growing part of its operations, which may help attract investors who balked at Budweiser Brewing’s valuation last time around.Other than a rising stock market, a simple technical reason may account for the brewer’s haste to try again. A company that seeks to list within six months of its first application doesn’t need to prepare a new set of accounts, meaning Budweiser Brewing can just strip the Australian operations from its financials when pitching to investors this time around.Others lining up at the IPO well include Megvii, a Beijing-based artificial intelligence startup that’s seeking $1 billion; consumer lender Home Credit NV, which is targeting as much as $1.5 billion; Chinese sportswear retailer Topsports International Holdings Ltd., which aims to raise about $1 billion; and ESR Cayman Ltd., a logistics real estate developer backed by Warburg Pincus that earlier shelved a $1.2 billion deal. The first to list of the current crop may be biotechnology firm Shanghai Henlius Biotech Inc., which has already started taking orders for a $477 million sale.The biggest flotation of all may come in October, when New York-traded Alibaba Group Holding Ltd. will seek to raise as much as $15 billion in a secondary listing, Reuters reported last month.The resurgence in the IPO market is a tonic for Hong Kong Exchanges & Clearing Ltd., which has faced skepticism over its $36.6 billion bid for London Stock Exchange Group Plc and whose shares have dropped 16% from this year’s high. Hong Kong has slipped in the pecking order of global stock exchanges after topping the rankings in 2018. Companies raised $10.8 billion in IPOs this year through Sept. 13, less than half of the total in the same period last year.The question is whether there will be enough investor demand to soak up all the stock that an eager and growing group of listing candidates is waiting to thrust on buyers. Meanwhile, Hong Kong’s economy is deteriorating and the protests haven’t gone away. Companies must also consider whether China’s feelgood efforts will extend beyond Oct. 1.Time may be of the essence for this crowd. To contact the author of this story: Nisha Gopalan at ngopalan3@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- InvestorPlace
3 Reasons Altria’s Investment in Cronos Group Stock Is Positive for CRON
Cronos Group (NASDAQ:CRON) stock fell 5.2% on Sept. 9 as a result of investors' concerns about the cannabis company's focus on vaping products. Those offerings have come under severe scrutiny in recent weeks, due to the death of six people from lung disease related to their use. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsCronos isn't the only cannabis company to have a vested interest in the success of vaping pens, but at the moment, it appears to be the biggest player taking it on the chin as a result of the recent health scare. If you own CRON stock, now is the time to be thankful that Altria (NYSE:MO) owns 45% of the cannabis company, with an option to buy an additional 10% in the future. Here are three reasons why that's the case. * 7 Discount Retail Stocks to Buy for a Recession Altria Understands Lungs Better Than MostWho would have more knowledge about how our lungs operate than a company whose products are directly responsible for harming them?Altria would not have made a $12.8 billion investment in Juul Labs or a $1.8 billion investment in CRON stock if it didn't understand the health risks associated with vaping. MO has been down this road many times with cigarettes. The fact that President Trump and his administration are trying to crack down on the sale of flavored e-cigarettes, while understandable, isn't really crucial for CRON stock. According to the Center for Disease Control and Prevention, 480,000 Americans die each year due to smoking. That's a staggering amount. However, we haven't seen cigarettes outlawed as a result of that sad situation. In fact, the FDA is currently trying to ban the sale of menthol cigarettes, but the tobacco companies will continue to fight the agency's legal efforts for years to come. Flavored e-cigarettes will likely take a long time to ban. The reality is that Altria understands what's at stake when it comes to vaping and e-cigarettes. They, along with the rest of the industry, are not going to go quietly into the night. Remember, the NRA isn't the only trade group in the U.S. with a powerful lobby. CRON Stock and a Potential MergerIn recent weeks, Altria's been negotiating with Philip Morris International (NYSE:PM), the owners of the Marlboro brand outside the U.S., to reunite after 11 years as separate companies. Last October, before Altria bought up a big chunk of CRON stock, I suggested that Philip Morris should make a play for one of Canada's big cannabis companies. "The tobacco companies were born to manufacture and sell the various by-products of the cannabis plant which includes marijuana and hemp," I wrote at the time. "The fact that only now are they considering a move -- after legalization in Canada -- suggests they've been irreparably scarred by years of tobacco litigation."Cowen & Co. analyst Vivien Azer recently suggested that the crackdown on vaping flavoring might be the nudge CRON and MO needed to officially tie the knot. After an acquisition, CRON would be controlled by a company with $54.7 billion pf annual revenue and $14.3 billion in free cash flow, providing it with plenty of capital to fight any potential opposition to cannabis vaping in the future. Altria Has a Beverage UnitCronos isn't the only cannabis company with a big focus on vaping. Aurora Cannabis (NYSE:ACB) is focusing on vape pens and edibles while ignoring cannabis beverages.I believe that's a mistake. Perhaps not a lethal one, but a mistake nonetheless. The older people get, the less they want to be messing with their lungs,. That's why I think cannabis-infused drinks will win in the end. Altria, although not nearly as involved in the alcoholic beverages industry as it once was, still owns premium wine producer Ste Michelle Wine Estates. In addition, as a result of Anheuser-Busch's (NYSE:BUD) $100-billion acquisition of SABMiller in 2016, Altria owns 10% of BUD stock.It's hard to imagine Budweiser turning down an opportunity to partner with Atria and Cronos to produce cannabis-infused drinks on a global basis. As long as Altria continues to own a big chunk of Cronos Group stock, I don't think investors need to overreact to the latest health concerns surrounding vaping. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 3 Reasons Altriaas Investment in Cronos Group Stock Is Positive for CRON appeared first on InvestorPlace.
- Zacks
4 Stocks to Ride on the CBD-Infused Beverage Trend
CBD-infused drinks are gaining fast popularity among all age groups, thanks to its many health benefits.
- Zacks
ECB Launches Fresh Stimulus! Grab 5 European Stocks Now
The ECB has unveiled a sweeping stimulus package in an attempt to prevent a sluggish Eurozone economy from grinding to a halt.
- Zacks
AB InBev Unit Revisits Hong Kong Listing, Plans $5B IPO
AB InBev (BUD) revisits Hong Kong listing, with improved market conditions and an attractive offer for investors.
- Reuters
Police probing AB InBev in New Delhi tax evasion case
Police in India's capital New Delhi are probing a case of alleged tax evasion involving Anheuser-Busch InBev, according to a police officer and a document seen by Reuters, a setback for the brewer already battling a three-year city ban. Local authorities barred AB InBev, the world's largest brewer, in July from selling its beer in the high profile New Delhi market for evading taxes. The Delhi ban followed an investigation by city authorities which found that beer maker SABMiller - acquired by AB InBev in 2016 for around $100 billion - used duplicate barcodes on its beer bottles supplied to city retailers that year, allowing it to pay lower taxes.
- Reuters
India police probing AB InBev in New Delhi tax evasion case
Police in India's capital New Delhi are probing a case of alleged tax evasion involving Anheuser-Busch InBev , according to a police officer and a document seen by Reuters, a setback for the brewer already battling a three-year city ban. Local authorities barred AB InBev, the world's largest brewer, in July from selling its beer in the high profile New Delhi market for evading taxes. The Delhi ban followed an investigation by city authorities which found that beer maker SABMiller - acquired by AB InBev in 2016 for around $100 billion - used duplicate barcodes on its beer bottles supplied to city retailers that year, allowing it to pay lower taxes.
- InvestorPlace
Ambev Stock Might Be the Best Beer Bet Heading into 2020
Back in April, I featured Brazilian beer company Ambev (NYSE:ABEV) in an article about the best large-cap stocks to own under $10. As I write this, Ambev stock is up 4.5%.Source: Daniel Spiess via FlickrThe two other stocks recommended: Ford (NYSE:F) is down 1.6% and Sirius XM (NYSE:SIRI) is up 13.7%. Over the same five months, the S&P 500 is up 2.5%, an indication that low-priced stocks did well over the summer.As for Anheuser-Busch (NYSE:BUD), who owns more than 60% of ABEV stock is up 6.9% over the same period, 240 basis points higher than its Brazilian subsidiary. However, year to date it's up 45.0% including dividends through Sept. 11, 2.4 times Ambev's total return for the year. InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith three-and-a-half months left in 2019, I'm wondering if ABEV, BUD, or some other beer stock is the best bet heading into 2020. Ambev Stock is the Best BetAmbev's 15-year total annual return is quite good, at 11.2%. That trails both its brewing peers and the Brazilian market at 13.5%. However, the entire U.S. market over this period could only muster a total return of 9.3%. * 10 Battered Tech Stocks to Buy Now My InvestorPlace colleague Vince Martin recently highlighted in an article in late August that Ambev has a much stronger balance sheet than its parent and is growing its normalized EBITDA on an organic basis at more than 10% per year. In the first six months of 2019, Ambev's revenues increased by 7.4%. Three of its operating segments: Brazil, Central America and the Caribbean, and Canada delivered growth while only the company's South American division (excluding Brazil) experienced declining sales. South America might be experiencing a craft beer boom but Ambev's holding its own in a very competitive market. It's also important to remember that Ambev also makes non-alcoholic beverage products. In the first six months of 2019, it grew this segment by 19.6%, accounting for 15% of Ambev's overall revenues. Although Ambev has only paid an eight-cent dividend so far in 2019, its goal is to deliver an average annual yield of 5%. Currently, its forward dividend yield is 5.2%. Over the long haul, buying ABEV stock under $5 should deliver above-average results, including the dividends. Bud's the CallEven though Budweiser might have a ton of debt on its balance sheet (its net debt at the end of June was $104.2 billion) it still managed to generate $9.1 billion in free cash flow in the first six months of the year. On an annualized basis over the trailing 12 months, BUD had $11.5 billion in free cash flow, $54.1 billion in revenue, and a free cash flow margin of 21.1%. This means it's generating 21 cents of free cash flow for every $1 of revenue.Anheuser-Busch said to be reviving its IPO plans for its Asian business, a move that's expected to raise $5 billion and give it additional liquidity on the remainder of its ownership stake, the company's giving itself financial flexibility to pay down debt, repurchase shares, buy a cannabis company, or countless other things it could do with the funds. The point is, Anheuser-Busch is the largest beer company in the world. Investors shouldn't have a problem with a dividend yield of 3.5% given the appreciation it's experienced so far in 2019. The Bottom Line on Ambev StockIf you're not sure which beer company to back, a good alternative would be to buy a thematic portfolio, either through an ETF, mutual fund, or third-party provider such as Motif Investing. Motif currently has a portfolio called "Take a Shot" that invests in makers of alcoholic beverages including BUD and ABEV, which account for 19.4% and 16.6% of the portfolio, respectively. Beer stocks account for 46.3% of the portfolio with wine and spirits, accounting for the rest.Over the past year, it's generated a return of 8.6%, better than both the S&P 500 and the Invesco Dynamic Food & Beverage ETF (NYSEARCA:PBJ). At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Ambev Stock Might Be the Best Beer Bet Heading into 2020Â appeared first on InvestorPlace.
- Bloomberg
Pulled Hong Kong IPOs Rise From The Ashes
(Bloomberg) -- Two Hong Kong initial public offerings that had been postponed earlier this year are rearing their heads again.Warburg Pincus-backed ESR Cayman Ltd., a logistics real estate platform, on Friday refiled listing documents with the Hong Kong stock exchange, a day after the world’s largest brewer Anheuser-Busch InBev did the same for its Asian unit.The potential return of the two deals, which had initially sought to raise about $11 billion between them, marks a remarkable turnaround for the fortunes of the Hong Kong stock exchange, which is languishing behind Shanghai and New York in terms of IPO proceeds. Companies have only raised $10.8 billion in Hong Kong IPOs so far this year, less than the amount withdrawn, according to data compiled by Bloomberg.Budweiser Brewing Company APAC Ltd. -- AB InBev’s Asian unit -- and ESR Cayman are respectively the largest and third-biggest pulled deals globally this year, the data show. Should they successfully complete their IPOs on the second attempt, it would give a boost to investor confidence and other prospective issuers waiting in the pipeline.Market confidence has been hit hard by ongoing anti-government protests in Hong Kong and the U.S.-China trade war, causing some Chinese companies to shift their IPOs to the U.S. The fact that AB InBev and ESR Cayman had to put off their IPOs because of lackluster investor demand underscores price sensitivity among the investors, many of whom lost money on IPOs last year and are pushing back against lofty valuations.IPO activity has picked up significantly in Hong Kong in recent weeks. Shanghai Henlius Biotech is set to be the first company since July to price a deal over $100 million when it closes its books next week, while Bank of Guizhou, Home Credit and Topsports International Holdings are currently gauging investor demand for deals that could fetch around a billion each.UPCOMING LISTINGS:Budweiser Brewing Company APAC Ltd.Hong Kong exchangeSize about $5bLaunching as soon as next weekJPMorgan, Morgan StanleyShanghai Henlius BiotechHong Kong exchangeSize up to $477mTaking orders from Sept. 11Pricing Sept. 18BofA Merrill Lynch, CICC, Citi, CMBI, Fosun HaniTopsports International HoldingsHong Kong exchangePremarketing started Sept. 9Size about $1bBank of America, Morgan StanleyLendlease Global Commercial REITSingapore exchangePremarketing started Sept. 2Citi among joint bookrunnersAsset WorldThailand exchangePrice: 6 bahtSize up to $1.6bProperty arm of billionaire Charoen SirivadhanabhakdiListing date: Oct. 10Home CreditHong Kong exchangePremarketing started Sept. 2Citi, HSBC, Morgan StanleyAllHome (home-furnishing retailer)Size up to $347mOpened books Sept. 13Pricing Sept. 26Listing Oct. 10Owned by billionaire Manuel VillarBhakti Agung PropertindoJakarta exchangePrice: 150 rupiahIssuance date: Sept. 13Listing date: Sept. 16Telefast Indonesia (provider of enterprise software solutions)Jakarta ExchangeKresna Sekuritas and Trimegah SekuritasOffering expected Sept. 9-11Expected listing Sept. 16More ECM situations we are following:Hong Kong biotech IPOs shine with 24% gain in just over a yearBernstein analysts give AB InBev’s Budweiser Brewing Company APAC Ltd. excluding the Australian assets an enterprise value of $52b on a 12-month forward basis, which implies a next-12-months EV/Ebitda multiple of 22.6x, they say in a noteChina’s Uber-for-trucks startup Full Truck Alliance said it’s weighing an initial public offering after breaking even from May, defying a sector-wide downturnAllHome Corp. and shareholder AllValue Holdings Corp. offer as much as 1.125b shares at 11.50-14.00 pesos apiece in an initial public offering in the Philippines, according to terms for the deal obtained by BloombergAccording to the draft registration statement for Metro Pacific’s IPO of its hospital unit, the company expects to sell 381.3 million shares of the unit in the Philippine IPOSEE ALSOAsia ECM Weekly AgendaIPO dataU.S. ECM WatchEU ECM WatchTo receive the ECM Watch in your inbox daily, click the “subscribe” button at the top of this articleTo contact the reporter on this story: Julia Fioretti in Hong Kong at jfioretti4@bloomberg.netTo contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Teo Chian Wei, Margo TowieFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Financial Times
Drunk in love: will a multinational listing help HKEX tempt LSE away from Refinitiv?
One thing to start: the Swedish buyout group EQT has set the price range for its shares above expectations in a listing that values one of Europe’s largest private equity companies at as much as €6bn — about €2bn more than expected. The Belgian brewer is taking a second sip from the bourse cup, much to the delight of Charles Li (pictured below), the exchange’s chief executive.
- Yahoo Finance Video
Companies to Watch: Apple makes a big investment, Ab InBev closer to Asia IPO, Levi's lockup period ends
Apple, AB InBev, Levi’s, AT&T and SeaWorld are the companies to watch.
Reuters VideosAB InBev tries again with Asia IPO
AB InBev wants to have another go at spinning off it Asian arm. The world's biggest brewer is planning a Hong Kong share sale worth up to 6.6 billion dollars. It would value the unit at between 45 and 50 billion dollars. If successful, it would be the world's second biggest flotation this year. Jan Craps is boss of the Asian unit. (SOUNDBITE) (English) JAN CRAPS, CEO OF BUDWEISER APAC, SAYING: "Theoretically of course it is possible that it does not go through. It's conditional to the right valuation and market conditions. But we are quite confident that investor interest is there." Success isn't guaranteed though. Back in July AB InBev tried to raise almost ten billion dollars selling the same unit. But that IPO was soon pulled. Reuters sources say investors thought the price too high. Now the new deal excludes AB InBev's Australian operations. They've been sold to Japan's Asahi. That leaves a business more focused on faster growing markets like China and Vietnam. If investors play ball, AB InBev will use the proceeds to pay down its massive debts. They hit more than 100 billion dollars following its purchase of rival SAB Miller in 2016.
