Brewer looks to lower end in IPO pricingBusiness | Avery Chen and Reuters 12 Jul 2019
Budweiser Brewing Company APAC, the Asia-Pacific business of Anheuser-Busch InBev, has guided potential investors toward the bottom of a pricing range for its up to HK$76.45 billion Hong Kong initial public offering.
The books closed yesterday. It's retail tranche is reportedly about nine times oversubscribed. The IPO is set to be priced today.
Budweiser APAC is due to begin trading on July 19 and did not introduce cornerstone investors. It is selling about 1.6 billion shares at HK$40 to HK$47 apiece, seeking to raise between HK$65.08 billion and HK$76.45 billion, much of which will go toward paying debt at its highly leveraged parent.
Even at the low end of the price range, the IPO would surpass the US$8.1 billion (HK$63.18 billion) New York float of Uber in May, the biggest globally this year, Refinitiv data shows.
Meanwhile, four companies start trading on the main board today.
In the Bright Smart gray market last night, shares of local engineering services provider Analogue (1977), controlled by Otto Poon Lok-to, the husband of Hong Kong Secretary for Justice Teresa Cheng Yeuk-wah, slumped 10 percent to HK$1.08, becoming the worst performer among the four new stocks.
Analogue has raised HK$335.7 million after pricing its IPO at HK$1.2. Its retail tranche was 6.59 times oversubscribed.
The company revealed that the top 10 shareholders own 85.22 percent of shares and the top 25 shareholders hold 91.09 percent. "Shareholders and prospective investors should be aware that the price of the shares could move substantially with a small number of shares traded and should exercise caution when dealing in the shares," the company warned.
For the other three stocks, IVD Medical (1931) slid 1.30 percent to HK$3.03, Hevol Services (6093) rose 48.44 percent to HK$1.9, and World Super (8612) was up 27.27 percent to HK$0.7 in the gray market last night.
CIMC Vehicles (1839), a subsidiary of China International Marine Containers (2039), closed at HK$6.14, 3.76 percent lower than its IPO price of HK$6.38.