AB InBev kicks off $9.8b IPO of its APAC business in HK’s biggest float in 2019

View of the Anheuser-Busch InBev logo outside the brewer's headquarters in Leuven February 26, 2014. REUTERS/Francois Lenoir

Anheuser-Busch InBev NV (AB InBev), the world’s largest beer maker, on Tuesday kicked off an IPO of its Asia-Pacific business to raise up to $9.8 billion in Hong Kong’s biggest float this year, according to a term sheet seen by Reuters.

Budweiser Brewing Company APAC, which includes a portfolio of more than 50 beer brands in the region, is selling 1.6 billion primary shares at an indicative range of HK$40-$47 ($5.13-$6.02) apiece, the term sheet showed.

Within that range, the firm could raise between $8.3 billion and $9.8 billion before any over-allocation option is included, giving it a market capitalization of up to $63.7 billion after the initial public offering.

The float is expected to close and the issue is likely to be priced on July 11, the term sheet said, adding the stock market debut is set for July 19.

A spokeswoman for AB InBev declined to comment.

AB InBev said in May that an IPO of its Asia business could help create a brewing champion for the region, where wealthy consumers are increasingly trading up to higher-margin premium beers, such as Budweiser or Corona.

JPMorgan (JPM.N) and Morgan Stanley (MS.N) are the joint sponsors of the float.