CUB owner AB InBev is celebrating investor orders in its Asia-Pacific operations being over-subscribed in just two days.
AB InBev executives and bankers told Bloomberg they already have enough investor demand just two days into their IPO roadshow.
AB InBev is seeking to raise between $US8.3 billion and $US9.8 billion through the partial sale of its APAC business on the Hong Kong stock exchange. It plans to offer 1.63 billion shares for between 40 and 47 Hong Kong dollars, making it the world’s largest IPO this year.
Budweiser Brewing Company APAC Limited is the largest beer company in Asia Pacific by retail sales value. It produces, imports, markets, distributes and sells a portfolio of more than 50 beer brands, which it owns or has licensed, including Budweiser, Stella Artois and Corona, Hoegaarden, Cass, Great Northern, Harbin and Victoria Bitter. Its principal markets are China, Australia, South Korea, India and Vietnam.
Net income of the Asia business was $1.4billon in 2018, AB InBev filings show, as compared with $1.1billion in 2017. Revenue for 2018 was $8.5billion, representing 6.1% organic growth.
AB InBev said it had seen market share in the Australian beer market increase to 48.8% in 2018, from 44.8% in 2013.
Asia is the largest beer consumption region for AB InBev by volume, accounting for 37% globally, and also one of the fastest-growing markets, the company said in its draft prospectus.
The region produced 18% of AB InBev’s sales by volume and 14% of its underlying operating profit last year from sales worth $8.46 billion, according to the prospectus.
Euromonitor predicts the Chinese beer market will pass the US beer market by 2021.
According to Reuters, AB InBev will use the proceeds to “reduce a debt pile of over $100 billion that was built up by its purchase of rival SABMiller in late 2016”.
The deal is expected to price in New York on July 11 and the stock will debut in Hong Kong on July 19.