Chinese pork producer Muyuan is said to weigh Hong Kong listing

Muyuan Foods, one of the world’s biggest pig breeders and pork producers, is considering a second listing in Hong Kong that may help it to raise at least US$1 billion (HK$7.8 billion), according to people familiar with the situation.

The Chinese company is seeking to hire banks to prepare for a possible share sale that could take place as soon as this year, the people said, asking not to be identified as the information isn’t public.

Deliberations are ongoing, and details, including size and timing, could change, the people said. Representatives for Muyuan didn’t immediately respond to requests for comment.

Founded in 1992, Muyuan was listed in Shenzhen in 2014. Its shares have dropped about 3 percent this year and 19 percent from the end of September, giving the company a market value of 204 billion yuan (HK$218 billion). The Shenzhen Stock Exchange Composite Index is up about 6 percent this year.

China has faced a glut in many agricultural products, including pork, the output of which surged as the country recovered from a widespread outbreak of African swine fever. The surplus in supply and weaker demand for meat as the economy falters are expected to weigh on pig farmers’ margins this year.

Still, Muyuan reported net income of 10.5 billion yuan in the third quarter, recovering from a loss in the same period in 2023, with revenue up about 17 percent.

If Muyuan proceeds with a share sale, it would be joining many other mainland-traded firms seeking a foothold in Hong Kong, including a keenly anticipated listing by battery maker Contemporary Amperex Technology Co, as well as Foshan Haitian Flavouring & Food and Jiangsu Hengrui Pharmaceuticals Co.
Bloomberg