Thursday 12 September 2019 12:28 pm

AB InBev revives Budweiser Asia listing

Budweiser owner Anheuser-Busch InBev is reconsidering listing its Asia business on the Hong Kong Stock Exchange after it shelved an initial public offering plan earlier this year.

AB InBev confirmed today that it has resumed its application for the listing of a minority stake of its shares on the Hong Kong Stock Exchange.

Read more: AB InBev toats £16bn sale of Australian beer business to Asahi

The company is aiming to raise around $5bn through the listing, and it is looking to price the deal on 23 September and list the unit on 30 September.

“The market conditions in recent days have improved and provided a good window, in which we should seize the opportunity to go ahead,” a source told Reuters. 

However, the company warned that the “decision to proceed will depend on a number of factors and prevailing market conditions”. 

The drinks giant scrapped plans for a $9.8bn initial public offering in July as trade tensions between the US and China dented investor confidence.

The world’s largest brewer said “several factors, including the prevailing market conditions” led to it pulling the plug on the float, which had been billed as the biggest IPO of the year.

Read more: AB InBev scraps plans for largest IPO of 2019

It had been planning to use much of the funds raised from the IPO to reduce its debt pile.

Sources told Reuters at the time that despite the company receiving offers from hedge funds and private wealth managers, some of the larger US investors made offers below the indicative range.