Shuanghui to Start Float Next Week15 January 2014
CHINA - Chinese pig meat processing giant Shuanghui is expected to begin its float on the Hong Kong stock exchange next week.
The listing on the Hong Kong exchange could raise up to $6 billion, according to the South China Morning Post.
The IPO comes just five months after the Henan based meat processor acquired th US pig meat company Smithfield for $4.7 billion.
The report says that Shuanghui is expected to file an A1 form for the official listing next week with Hong Kong Exchanges and Clearing. The flotation could be completed by April.
Smithfield is expected to be included in the flotation.
Six investment banks have been engaged for the process including mainland Chinese banks of China Citic Securities and BOC International as well as Goldman Sachs, UBS, Morgan Stanley and Standard Chartered.
The offer would enable the company - run by Wan Long, one of the mainland's richest men - to pay off outstanding debt, including Smithfield's net debt of US$2.4 billion, as well as a US$4 billion syndicated loan.
TheMeatSite News Desk