Hong Kong: Budweiser’s offer is the second-largest IPO in the world

18/09/2019

 

The renowned US company will collect $ 4.8 billion and will have the support of GIC as a fund for Singapore’s sovereign wealth. In July, the Budweiser Brewing Company APAC withdrew its offer while the trade war intensifies

 

Interest in the Hong Kong stock market by foreign companies is growing. The last major company concerned is the Budweiser Brewing Company APAC, which declared Tuesday that it plans to raise up to US $ 4.8 billion and add Singapore’s sovereign fund GIC Private Limited as a key investor while reviving its initial public offering in Hong Kong.

According to financial data provider Refinitiv, the offer will be the largest in Hong Kong this year and the second-largest in the world after the listing of US $ 8.1 billion for Uber Technologies in New York in May.

Jan Craps, managing director of the company, explained that the IPO offer evaluations were revised after Hong Kong’s political and economic conditions returned to normal: “This IPO is conditional to the right valuation, the right market conditions. In this world, you never know what happens tomorrow, or next week. ”

 

The total global offering of Budweiser would represent 9.5 per cent of the company’s outstanding share capital

 

“We are quite confident investor interest is there. You’ve seen the cornerstone investor. We believe, within the investor community, there is a broad support for this transaction today.” Craps continued.

Furthermore, Budweiser‘s revitalized listing would boost the Hong Kong stock exchange, which lost the crown as the leading IPO market in the first half of the year and saw several companies delay their bids as valuations fell by 40% this summer.

The situation in Hong Kong, back to normal, has led to an improvement in the appetite among investors and has made companies more comfortable in returning to the markets for new listings. For example, the real estate developer of logistics ESR Cayman said on Friday it would like to re-launch its $ 698.8 million IPO in Hong Kong, which has been delayed due to the “current market conditions” of June.

 

Budweiser said GIC would invest US $ 1 billion in the offering

 

In addition, Home Credit, a consumer credit lender that sees China as its largest market, started talking to institutional investors ahead of its $ 1 billion listing in Hong Kong.

Despite the optimistic tone, there is the possibility of a renewed US-China trade war and further unrest in Hong Kong. “We cannot deny that it is an unstable and challenging position here today in Hong Kong,” Craps said. “It is a stimulating environment. At the same time, as an Asian champion, we want to be based in Asia.”

“When we look at what it means for us, we believe Hong Kong is the best financial centre for us in Asia to do the listing. We believe there is a very strong foundation. There is a very bright future for Hong Kong as a financial centre” said Craps.

 

 

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