Friday, April, 26, 2024 12:07:33
IPO activities experienced a slowdown in Q1 of 2019 due to many geopolitical tensions such as the ongoing trade war between United States and China or the intensification of Brexit negotiations between the EU and the UK. Now, however, firms that are well-prepared are either searching for the right opportunity to kick off their IPOs or are going public regardless. Anheuser-Busch InBev, a Brazilian-Belgian multinational brewing and drinks company, reportedly announced that it valued its Budweiser initial public offering (IPO) at HK$27 per share, making it the second largest IPO of the year. The brewing firm stated that it would also issue an extra 189,3Saif Bepari,000 shares in order to meet the market demands, thus raising the overall offering number to 1.45 billion shares. After implementing this upsize option, Budweiser’s IPO in APAC is predicted to gather about US$5 billion or HK$39.2 billion. AB InBev recently stated that the Budweiser Brewing Company APAC Ltd IPO was valued at HK$27 which is US$3.44 a share, the lower end between HK$27 and HK$30 indicative range. Budweiser APAC Ltd offerings is expected to begin trading on September 30 under 1876 stock code on Hong Kong Stock Exchange. Reports cite, even at the bottom end of expected range, this IPO is expected to become second largest in the world for 2019, after Uber Technologies IPO raised $8.1 billion earlier in May. despite the pricing being set at the lower end, this IPO share is fair deal for any investor, especially after looking at AB InBev’s focus on China’s premium beer market. The brewing giant had earlier cancelled a plan of a larger initial public offering (IPO) in July, which could have raised a total amount of US$9.8 billion owing to several factors, which also includes prevailing market conditions. According to verified sources the firm’s assets are top-notch, and with the exclusion of the slow-progressing Australian operations, this deal has become attractive even more than last time. AB InBev hopes to get the gross proceeds of 39.2 billion HKD which is approximately 5.0 billion USD from this IPO, before exercising the over-allotment option. If the over-allotment option is implemented fully, AB InBev would expect additional gross proceeds of 5.9 billion HKD. Source credit: https://www.cnbc.com/2019/09/24/ab-inbev-prices-its-budweiser-ipo-at-hk27.html