Saturday 13 July 2019 3:50 pm

Budweiser blues: AB InBev scraps plans for largest IPO of 2019

The world’s largest brewer has abandoned plans for a blockbuster initial public offering (IPO).

Budweiser owner AB InBev cited weak market conditions as it pulled the plug on a $9.8bn (£7.8bn) listing on the Hong Kong Stock Exchange.

The float, which was billed as the world’s largest IPO of 2019, comes against a backdrop of global investor uncertainty over trade tensions between China and the US.

The firm blamed “several factors, including the prevailing market conditions”, for its decision.

AB InBev’s shares price closed down three per cent on Friday in New York following the move.

The multinational drink and brewing group had been hoping to overtake Uber as 2019’s largest listing.

It said that much of the funds raised from the IPO, which were expected to be in the range of $8.3bn and $9.8bn, would have been geared towards slashing debt.

Sources told Reuters 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.