Exclusive | Shuanghui to apply next week for US$6 billion Hong Kong IPO, sources say
Shuanghui's planned New Year initial public offering, one of the biggest in Asia, will pay down debt following Smithfield acquisition
Shuanghui International, China's largest meat processor, plans to apply as early as next week for a listing on the Hong Kong stock exchange to raise up to US$6 billion, making it one of the biggest initial public offerings in Asia in recent memory, said people familiar with the situation.
Shuanghui's plan for an offering comes less than five months after its US$4.7 billion acquisition of Smithfield Foods, the biggest pork producer in the US, vaulting the Henan-based company into the top ranks of firms involved in the processing of meat and meat products.
The float underscores China's rise to the world's second biggest economy as mainland tycoons scour the world for acquisitions to expand their business.
Company sources told the that Shuanghui would file an A1 form, the official listing application, with Hong Kong Exchanges and Clearing next week and wait for a hearing after the Lunar New Year. If successful, the firm would list no later than April.
"So far so good. Everything is on schedule," said one company source.
Smithfield is expected to be included in the offering.
The six investment banks hired for the listing include two major mainland securities houses - China Citic Securities and BOC International - and four large foreign banks - Goldman Sachs, UBS, Morgan Stanley and Standard Chartered, sources said.
