Chinese pork producer and Smithfield Foods parent company WH Group said it plans to raise up to $3 billion as early as this month in a revived Hong Kong initial public offering. The company initially hoped to raise $5.3 million in an April IPO, reports Reuters.
The offer would be the second attempt this year by the world's biggest pork company to go public, as it seeks funds to repay part of the debt it took to foot last year's $7.1 billion purchase of Smithfield International. The new IPO would only comprise primary shares, meaning existing shareholders including CDH Investments, New Horizon, Goldman Sachs and Temasek Holdings would not sell their stake in the offering, IFR reported, citing sources familiar with matter.
After the IPO, public shareholders would own about 20 percent. WH Group plans to complete the offer quickly, and with little or no marketing, IFR added.