Market Overview

Report: AB InBev's Asia IPO Could Still Be Launched

Report: AB InBev's Asia IPO Could Still Be Launched

Anheuser Busch Inbev NV (NYSE: BUD) is reconsidering its decision to halt a spin-off of its Asia business, sources close to the matter told Reuters.

What Happened

Budweiser's parent company decided against raising around $10 billion by floating part of its Asia business, Budweiser Brewing Company APAC, in July.

The company has revived its plans, although it is now looking to raise around $5 billion, Reuters said. 

Ab InBev could price its IPO Sept. 23 and list the business on the Hong Kong stock exchange by the end of the month.

One of the sources told Reuters the market condition improved "in recent days," giving the beer company a "good window" to "seize the opportunity."

The company said in a statement that it continues to explore an IPO, according to Reuters. 

Why It's Important

Ab InBev announced shortly after its cancelled IPO plans that it reached an agreement to sell its Australian business to Japan's Asahi Group for $11 billion.

The asset sale could help the beer company see greater interest in a future IPO, as the remaining Asia business consists solely of faster growth markets.

What's Next

AB InBev has yet to confirm its intentions to list part of its business on the Hong Kong exchange, but the stock's 2.3% gain Thursday morning may suggest investors believe the deal is back on the table.

The stock was up 3.86% at $97.87 at the time of publication Thursday. 

Benzinga's Take: Ab InBev faces less geopolitical risk, as tensions in Hong Kong have slightly eased after the controversial extradition bill was cancelled and the Hong Kong exchange offered to buy the London Stock Exchange.

Do you agree with this take? Email with your thoughts.

Related Links:

Analyst: Anheuser Busch Isn't Done With Shedding Assets

UBS Has Budweiser Hangover, Downgrades AB Inbev After Q2 Print


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