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Anheuser Busch Inbev Preps Biggest IPO Of 2019 In Hong Kong

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. 

Related Links:

Bank Of America Upgrades Anheuser Busch, But Says Mainstream Beer Still Slumping

Convoy Wins Anheuser-Busch's Non-Asset Carrier Of The Year Award


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