Budweiser brewing giant AB InBev cancels Hong Kong IPO
Belgian-Brazilian group Anheuser-Busch InBev is the world’s largest brewer, producing Stella Artois and Budweiser among other major brands (JUSTIN TALLIS)
Hong Kong (AFP) – The company that makes Stella Artois and Budweiser has scrapped its planned listing in Hong Kong, cancelling what would have been the world’s largest initial public offering this year.
Anheuser-Busch InBev, the world’s biggest brewer, had hoped to raise almost $10 billion from listing its Asia Pacific subsidiary Budweiser Brewing Company APAC Ltd.
“The company is not proceeding with this transaction due to several factors, including the prevailing market conditions,” Belgium-based AB InBev said in a statement Friday.
“The company will closely monitor market conditions, as it continuously evaluates its options to enhance shareholder value, optimize the business and drive long-term growth, subject to strict financial discipline.”
The move is a blow to Hong Kong, which has been battling to win listings by big international firms at a time of trade tensions between China and the United States.
It also comes after a month of mass protests in the city over a controversial extradition bill.
The Belgian-Brazilian group’s IPO would have been the biggest in the world since Uber’s listing earlier this year raised $8.1 billion.
But that could be easily surpassed as Chinese online retail titan Alibaba considers a Hong Kong listing.
The tech firm is reportedly looking to raise an eye-watering $20 billion, which would be the biggest in Hong Kong since insurance firm AIA raised $20.5 billion.
Alibaba raised $25 billion when it listed in New York five years ago, making it the world’s biggest IPO.
Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.