AB InBev, the world’s largest brewer, plans to raise up to $9.8 billion from the listing of its Asia Pacific business, according to a term sheet seen by Reuters.
The Hong Kong IPO consists of 1.63 billion shares of Budweiser Brewing Company APAC, offered at between HKD 40 ($5.13) and HKD 47 ($6.02). Trading is expected to start on 19 July.
The listing would mark the largest initial public offering this year and give Budweiser Brewing a market capitalisation of up to $63.7 billion.
AB InBev, which makes beer such as Bud Light and Stella Artois, said in May it was exploring the float dependant on market conditions.
The company is still trying to reduce the debt it amassed through its acquisition of SABMiller for more than $100 billion in 2016.
Last year, the company’s Asia Pacific unit recorded revenue of $8.47 billion as it was boosted by a strong performance in China where its super premium brands “continued to grow significantly”. In 2017, the company opened a new brewery in Fujian province, which is capable of brewing 1.5 million tonnes of beer per year.
However, in the first quarter of 2019, AB InBev volumes in Asia Pacific were down 1.3% compared to the previous year, compared to global growth of 1.3%.
© FoodBev Media Ltd 2019