Beer giant AB InBev kicks off US$9.8 billion IPO of Asian business in Hong Kong with roadshow

Hong Kong public offering tranche of listing to be available between July 8 and July 11

One-month Hibor jumps to its highest level since 2008, which could mean higher costs for retail and institutional investors

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Budweiser Brewing Company APAC operates more than 50 beer brands, including Corona, Stella Artois, Harbin and Budweiser. Photo: Reuters

Published: 7:45pm, 3 Jul 2019Updated: 10:39pm, 3 Jul 2019

Belgian brewing giant Anheuser-Busch InBev NV (AB InBev) kick-started the mega listing of its Asia business, Budweiser Brewing Company APAC, in Hong Kong with an investor roadshow on Wednesday, as it inches closer to completing what will be the world’s biggest initial public offering this year.

Budweiser Brewing, the largest beer maker in Asia-Pacific by volume, plans to raise up to US$9.8 billion in capital by selling 1.6 billion primary shares at between HK$40 and HK$47 apiece, according to its prospectus.

The Hong Kong public offering tranche of the listing, accounting for 5 per cent of the total shares, will go on the market on July 8 and close on July 11. The shares will debut on July 19.

In a rare move, the company did not introduce any cornerstone investors, usually large buyers that pledge to subscribe to a certain amount of shares. Introducing reputable cornerstone investors is a common way for companies and their sponsors to signal market confidence in the deal.

The one-month Hong Kong interbank offered rate (Hibor), meanwhile, jumped to 2.7 per cent on Wednesday, its highest level since 2008. This could mean increased costs for retail and institutional investors as they prepare capital for the listing.

Investors who attended the roadshow on Wednesday said the deal was appealing because Budweiser has a good brand image and corporate governance, and also because of a strong rally in Hong Kong-listed beer stocks this year.