The Strategist

AB InBev raises $ 5 billion during IPO in Hong Kong

09/24/2019 - 09:36

The world's largest brewing company, Anheuser-Busch InBev SA (AB InBev), raised about $ 5 billion through an IPO of its Asian business, Budweiser Brewing Company APAC, on the Hong Kong Stock Exchange. The placement took place with the second attempt: the company planned to hold the event earlier, but in July interrupted preparations, citing market conditions.

American and Czech Budweiser in Tray
American and Czech Budweiser in Tray
AB InBev sold 1.262 billion shares of Budweiser for 27 Hong Kong dollars ($ 3.45) per share. The placement went along the lower boundary of the announced range. According to the IPO information, Budweiser was valued at more than $ 45 billion, which makes it one of the largest brewing companies in the world with a listing, writes The Wall Street Journal. The placement was organized by J.P. Morgan and Morgan Stanley.

Trading in shares of Budweiser will begin on September 30.

The Budweiser IPO was the largest for the Hong Kong Stock Exchange and the second largest worldwide this year (after Uber Technologies posted $ 8.1 billion in New York), according to Dealogic.

For some time, AB InBev has been buying up assets in various regions. As a result, the company now owns hundreds of beer brands in dozens of countries. At the same time, AB InBev has accumulated more than $ 100 billion of debt. One of the goals of the IPO in Hong Kong was to raise funds to reduce the debt burden.

In July, AB InBev canceled its placement in Hong Kong due to "a number of factors, including the market situation." The city has been engulfed in mass protests during all summer, and the business environment was not inviting. According to Reuters, Chinese Internet company Alibaba has postponed an IPO on the Hong Kong stock exchange. 

AB InBev announced the decision to resume preparations for the IPO on September 12.

Budweiser APAC is the largest beer producer in China, Australia and South Korea. The company's portfolio includes more than 50 beer brands such as Budweiser, Stella Artois, Corona and Hoegaarden.