Singapore’s Sovereign Wealth Fund GIC to Invest in US$4.8 Billion Budweiser IPO in Hong Kong

Singapore’s sovereign wealth fund GIC to invest in US$4.8 billion Budweiser IPO in Hong Kong

The second biggest IPO in the world after Uber’s USD 8.1 billion IPO back in may.Budweiser APAC plans to raise upto USD $ 4.8 Billion through its IPO in Hong Kong as reported by South China Morning Post.

This comes after AB InBev re-considered about IPO for Budweiser in Hong Kong, just 2 months after pausing it.

It has decided to make Singapore’s sovereign wealth fund GIC Private Limited as it’s most important investor.

It will be the second biggest IPO in the world after Uber’s USD 8.1 billion IPO back in May, according to financial data provider Refinitiv.It’s initial proposal was to become the largest IPO in the world, when it hoped to raise US$ 9.98 billion.It failed to attract such valuation due to US-Sino trade wars and the Hong Kong protests.

“This IPO is conditional to the right valuation, the right market conditions. In this world, you never know what happens tomorrow, or next week,” Jan Craps, the company’s chief executive, said. “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.”

This would be beneficial for the exchange in Hong Kong as well as earlier this year it had lost out on many IPOs.The trade wars have cooled down since and the Hong Kong Chief’s announcement for the withdrawal of the extradition bill has also eased market sentiments.But a revived trade war and continued protests in Hong Kong may close the window for IPOs once again.

Budweiser has planned to sell 1.26 billion primary shares for a range of HK$27 to HK$30, according to its prospectus. This would value the IPO at US$4.8 billion at most.The total global offering would represent 9.5 percent of the company’s outstanding share capital. That could be increased up to 15 percent of its outstanding capital, if the offer is increased and an over subscription and allotment is fully exercised.

The IPO would run from today until September 23. Shares are expected to be on the stock exchange on September 30th.


Written by

Cheryl Toh

Last updated on

September 18th 2019, 10:32 am

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