IPO activities witnessed a slowdown in the first quarter of 2019 owing to several geopolitical tensions like the trade war between China and United States or the intensifying EU, UK Brexit negotiations. Now, however, well-prepared enterprises are either looking for the right window of opportunity to go public or are kicking off their IPOs regardless.
Anheuser-Busch InBev SA/NV, the multinational drink & brewing organization, reportedly announced the launch of its second attempt at an IPO in Hong Kong, targeting up to $6.6 billion. This might possibly be the second largest flotation of 2019 in the world.
The Belgian giant, that earlier in July tried to raise over $9.8 billion by an initial public offering (IPO) of the Budweiser Brewing Company APAC Ltd, recently stated that over 1.3 billion shares will be offered by it at between $3.45-$3.83 apiece.
The novel offering includes a unique "upsize" option which will enable the organization to trade up to 36.8% more shares. Assuming that the company uses this option completely at the topmost end of the offered price range, the sale could bring in up to $6.6 billion before any normal overallotment alternative is included.
If Budweiser APAC’s IPO is completed, it would further provide a boost for Hong Kong after China-based Alibaba Group Holding Ltd delayed a listing last month that would have been worth over $15 billion owing to the political tensions in the city.
Reports cite, so far in 2019, organizations have managed to raise $10.8 billion through IPOs in Hong Kong, China – quite less than the $41 billion gathered in New York.
The money raised from IPO would help the Belgian giant reduce a debt burden of more than $100 billion, accumulated after the acquisition of SABMiller earlier in 2016.
CEO of Budweiser APAC, Jan Craps stated that the current conditions are highly challenging, but after listening to potential investors the company believes that there is a strong anticipation about the business as well as its IPO.
The beer maker also plans to develop an Asian champion to spur alliances. The brewing assets of privately operating ThaiBev or Philippines’ San Miguel are expected to be the possible partners or targets of the company.