AB InBev seeks to raise nearly $10bn in Hong Kong listing

Global brewer, Anheuser-Busch InBev is seeking to raise US$9.8bn in an Initial Public Offering (IPO) of a minority stake in its Asia business. The listing could potentially value the company’s Asia Pacific operation at nearly US$64bn.

Budweiser Brewing APAC will be offering 1.6bn shares in an indicative range of HK$40 to HK$47 each (US$5.13 to US$6.02) by July 11.

Analysts say that funds raised would allow the brewer to grow its presence in the region and address investor concerns about its debt load of over US$100bn acquired during its takeover of SABMiller in 2016.

The company’s Asia business unit known as Budweiser Brewing APAC earned US$1.1bn in 2018 on revenue of US$8.5bn.

It is the biggest beer producer by value in China, Australia and South Korea and produces, imports and markets over 50 brands including Budweiser, Stella Artois, Corona and Hoegaarden.

Speaking on the listing, Carlos Brito, AB InBev’s CEO said “The number one reason to do the listing is to have a platform in the region that is seen as closer to those markets and connected to what the region will do, since that’s something that can be attractive to local groups”.

The listing is expected to debut in New York on July 11 and on the Hong Kong Stock Exchange on July 19.

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