Source: Rita Jane Gabbett, MEATINGPLACE, 4/28/14
 

Estimates of the expected size of Smithfield parent WH Group’s initial public offering on the Hong Kong exchange now range as low as $1.3 billion compared to initial hopes of raising as much as $5.3 billion, according to recent media reports.

WHO Group, formerly Shuanghui Limited, bought Smithfield Foods last year.

A South China Morning Post article now estimates the size of the IPO at $1.9 billion and a Bloomberg report put it as low as $1.3 billion.

A week ago the company postponed pricing the IPO until later this week, due to weak demand for shares.
Analysts point to number of issues weighing on the IPO including weaker pork demand in China, a lack of coordination among a record number of banks managing the IPO and bad press when local media reported WH Group executives stood to make as much as $600 million on the deal, launching concerns about corporate governance.

The smaller IPO is expected to sideline original investors such as CDH Investments and New Horizon, Goldman Sachs and Singapore’s Temasek that reportedly were looking to cash out on the IPO, according to the reports.

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