Hong Kong: AB InBev raises additional USD750 million in IPO

AB InBev has raised additional USD 750 million in its USD 5 billion IPO last week. Budweiser Brewing Company APAC reported in a statement to the Hong Kong stock exchange that it excercised a so-called greenshoe option, a clause contained in the underwriting agreement of an initial public offering (IPO) that allows underwriters to buy up to an additional 15% of company shares at the offering price. This allowed the company to sell additional 217.8 million shares at HKD 27 (USD 3.4).

After the first attempt in July failed (inside.beer, 13.7.2019) AB InBev was last week successful in listing its Asian business unit on the Hong Kong stock exchange. (inside.beer, 29.9.2019). However, AB InBev hoped to raise more money to pay down its huge debt stemming from the purchase of SABMiller in 2016, since the price of HKD 27 (USD 3.44) per share marked only the bottom end of the HKD 27 to HKD 30 indicative range.

Nevertheless, investors who bought the shares at the initial share price have already gained some extra pocket money on their investment since the stock price increased within 3 days since it its first listing on Monday 8 percent.

Update 5.10.2019:

The Budweiser Brewing Company APAC share finished on Friday the first week of its listing at a price of HKD 30,50 (USD 3.83), which is a plus of nearly 13 percent within five days. This was even above the upper indicative range of HKD 30, which AB Inbev envisaged for its IPO last week.

Share this article: