Brewer AB InBev placed the IPO of its Asia-Pacific unit at the lower end of its target range and raised about US $5 billion, indicating that the agreements planned in Hong Kong may need more moderate values to succeed due to protests that have disturbed investors.
Anheuser-Busch InBev NV (AB InBev), the world’s largest brewer, relaunched the Initial Public Offering (IPO) this month, after in July it canceled its plans for a larger IPO of the unit citing “several factors, including the prevailing market conditions. ”
The IPO of Budweiser Brewing Company APAC Ltd is the second largest globally so far this year, only surpassed by the IPO of US $8.1 billion of Uber Technologies Inc in May, Refinitiv data showed.
AB InBev, whose portfolio of more than 50 beer brands includes Stella Artois and Corona, said Tuesday that the IPO was placed at 27 Hong Kong dollars (US $3.44) per share, at the lower end of its estimated range.
The new AB InBev IPO excludes its operations in Australia, which agreed to sell the Japanese Asahi Group for US $11 billion shortly after it discarded the previous IPO.
Meanwhile, Topsports International Holdings, the sportswear unit of Chinese footwear retailer Belle International, launched an IPO in Hong Kong on Tuesday of up to US $1.2 billion, according to data seen by Reuters.
The IPOs of AB InBev and Topsports are among several recent IPOs that are seen as a test of investor confidence after protests against the Hong Kong government, which have affected the city for four months and pressured the stock market.