Budweiser brewer reportedly plans for slimmer IPO in Hong Kong

By MarketsFOXBusiness

Budweiser is a super-premium brand in China: Anheuser-Busch North America CEO

Anheuser-Busch North America CEO Michel Doukeris on growth in China, the impact of aluminum tariffs and the outlook for the company in the U.S. market.

Just two months after plans for a blockbuster initial public offering in Hong Kong were shelved, Anheuser-Busch InBev announced it was back shopping for its Asia Pacific unit, Budweiser Brewing Company APAC Ltd.

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The world’s largest brewer, with brands like Budweiser and Corona, said it is continuing to explore an IPO in Hong Kong, adding that there is no assurance that the transaction will be completed, according to the company's statement. The company cited numerous factors, including prevailing market conditions, for reasons why it may not be completed.

AB InBev is hoping to raise $5 billion in an IPO by the end of September, The Wall Street Journal reported, citing sources familiar with the matter, adding that the share sale is likely to formally launch next week.

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This compares to the nearly $10 billion they were hoping to raise after filing an application in May to list a minority of its shares on the Hong Kong exchange. In July, the beer giant announced it would not proceed with the planned listing, citing market conditions.

The deal, according to the Journal, would have been the biggest IPO of 2019.

According to Reuters, the news rocked the HKEX which was banking on the listing to attract other high-profile international companies amid increased trade tensions between the United States and China.

This comes on the heels of Hong Kong’s $36.6 billion bid for the London Stock Exchange. Former New York Stock Exchange CEO Dick Grasso told FOX Business’ Maria Bartiromo on Monday, "It will be interesting to see what London's reaction is you know this is probably one of those rare moments where we may see a reverse Pac Man again. You know we haven't seen one in a while but London might turn around and bid for Hong Kong just to make it interesting.”

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Anheuser-Busch told FOX Business they could not comment on the potential transaction.

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