The world’s largest brewer, Anheuser-Busch InBev has announced its decision to proceed with the initial public offering for its Asian unit, Budweiser APAC.
The company said it will float a total of 1.2 million shares of a minority stake of its Asia Pacific subsidiary, Budweiser Brewing Company APAC Limited. The company also said it will price the offering at 27.00 HKD per share.
The Company has also partially exercised an offer size adjustment option, issuing an additional 189,354,000 shares for a total of 1,451,704,000 shares to cover market demand. The initial public offering is also subject to an over-allotment option of up to 217,755,000 additional shares at the same offer price. Subject to customary closing conditions, the shares are expected to begin trading on 30 September 2019 on the Main Board of The Stock Exchange of Hong Kong Limited (“Hong Kong Stock Exchange”) under the stock code 1876.
Budweiser APAC said it will have a mutually beneficial relationship with AB InBev, operating under AB InBev’s world-class corporate governance standards and benefiting from access to a portfolio of global and multi-country brands.
AB InBev will control a majority ownership of Budweiser APAC. If the over-allotment option is not exercised at all, AB InBev will control 88.86% as at the end of the exercise period. If the over-allotment option is exercised in full, AB InBev will control 87.22% as at the end of the exercise period.
AB InBev said it expects the gross proceeds of this offering to be 39.2 billion HKD (approximately 5.0 billion USD), prior to any exercise of the over-allotment option. If the over-allotment option is exercised in full, AB InBev would expect the additional gross proceeds to be 5.9 billion HKD (approximately 750 million USD). AB InBev intends to apply all of the net proceeds from the offering to repay debt.