AB InBev Asia unit gains 4% in HK debut after relaunching IPO

Bottles of beer move along a conveyor belt at the Anheuser-Busch InBev NV Budweiser bottling facility in St. Louis, Missouri, U.S., on Tuesday, Oct. 24, 2017. Photographer: Luke Sharrett/Bloomberg

Shares in AB InBev’s Asia-Pacific unit, which last week raised about $5 billion after relaunching its initial public offering (IPO), gained as much as 4% on their market debut in Hong Kong on Monday.

Anheuser-Busch InBev NV (AB InBev), the world’s largest brewer, relaunched the unit IPO this month after cancelling a plan for a bigger float in July citing “several factors, including the prevailing market conditions”.

The Asia unit, Budweiser Brewing Company APAC Ltd, raised about $5 billion in the world’s second-biggest IPO this year, after pricing the Hong Kong float at the bottom of a marketed range.

Budweiser APAC shares rose to as much as HK$28.10 at open on Monday, compared to its IPO price of HK$27 per share. The stock was trading at HK$28, up 3.79%, at 1001 local time (0201 GMT), while the market index. HSI was down 0.2%.

Proceeds from the IPO of Budweiser APAC, whose portfolio of more than 50 beer brands includes Stella Artois and Corona, will help AB InBev reduce debt of over $100 billion accumulated following the purchase of rival SABMiller in late 2016.

The brewer also has another goal – to create an Asian champion to spur consolidation. Analysts see the brewing assets of San Miguel (SMC.PS) of the Philippines or of Thai Beverage (TBEV.SI) as possible partners or targets.

JPMorgan and Morgan Stanley are the joint sponsors of the Budweiser IPO. They are also among the global coordinators for the offering with Bank of America Merrill Lynch and Chinese investment bank CICC.

Reuters 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.