Anheuser Busch Inbev To Investors: This IPO Is For You

Global beer giant Anheuser Busch Inbev NV BUD confirmed the pricing of its Asian business IPO on Tuesday and expects to raise around $5 billion, CNBC reported.

What Happened

Ab InBev planned to proceed with its IPO earlier in the summer, but scrapped its plans in July due to "prevailing market conditions."

The company reversed its decision in early September and will now offer 1.45 billion shares of its Budweiser APAC business on the Hong Kong exchange at a price of HK$27 ($3.44) each, according to CNBC.

While the pricing is at the low end of the expected range of HK$27 to HK$30 a share, the company is offering 189.354 million additional shares to satisfy market demand.

Why It's Important

Ab InBev's pricing represents a "fair deal" for investors, and the fact it came in at the low end of the pricing range shouldn't be a surprise, Dickie Wong, research director at Kingston Securities, told CNBC in an e-mail.

"In China, especially the premium … and ultra premium beer market has been doing very well, outperforming everywhere, in fact." 

The size of the deal also implies Ab Inbev will hold the title of overseeing the second-largest IPO in the world.

Ride-hailing company Uber Technologies Inc UBER raised more than $8 billion in its IPO.

What's Next

Budweiser APAC will trade for the first time on Sept. 30 under the stock code 1876, a reference to the year the company was founded, on the Hong Kong exchange, CNBC said. 

The U.S. stock was trading down more than 2% at $94.34 in Tuesday's premarket session. 

Related Links:

IPO Expert On AB InBev's Canceled Go-Public Plan: It Wasn't Clear From Day One

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