Shuanghui adds 10 banks for Hong Kong WH Group listing

Shuanghui International, China's biggest meat processor, which acquired American pork producer Smithfield Foods for US$4.7 billion last year, has added another 10 underwriting banks to the syndicate for its US$5 billion Hong Kong initial public offering, people familiar with the deal said.

In a bid to expedite the planned share sale, Shuanghui International - which will be listed as WH Group, a holding company created for the public offering that carries assets including Smithfield Foods and Shenzhen-listed Henan Shuanghui Investment & Development - has hired JP Morgan and Credit Suisse to join the syndicate team, bringing in a total of 16 joint bookrunners so far.

Bankers who have been working on the deal since last year said more banks were expected to be added to the Shuanghui listing given the unusually large size of the offering. The listing may happen as early as the second quarter, they added.

"A few newly joined banks will take up the role of being global co-ordinators, a prominent position in the deal," said a banker with direct knowledge of the situation.

Bankers in Hong Kong are putting a great deal of emphasis on the Shuanghui offering, which could be one of the largest deals this year, and investors are eager to make a bet on consumer stocks at the expense of banking stocks amid worries over asset quality.

Shuanghui's expanded syndicate team comes after the Henan-based company received listing approval from the Hong Kong stock exchange last week.