Smithfield Meals seeks as much as $10.7 billion valuation in US IPO

By Arasu Kannagi Basil

(Reuters) -Smithfield Meals is focusing on a valuation of as much as $10.73 billion in its New York flotation, the Farmland (NYSE:FPI) bacon maker mentioned on Tuesday, transferring nearer to its much-anticipated U.S. inventory market return after greater than a decade.

Hong Kong-based WH Group (OTC:WHGLY), the world’s largest pork producer, is spinning off Smithfield right into a listed firm, because it appears to create a separate fundraising platform for its U.S. and Mexico companies.

Smithfield and WH Group are every providing 17.4 million shares, priced between $23 and $27 every, to lift as much as $939.6 million.

The IPO is about to be the biggest U.S. itemizing by a meals firm since Swedish oatmilk maker Oatly Group (NASDAQ:OTLY) AB’s $1.6 billion flotation in 2021, in accordance with knowledge compiled by LSEG.

“As the primary main shopper IPO this 12 months, Smithfield shall be carefully watched. Success of the deal might pave the best way for different IPOs throughout industries, specifically if the deal performs nicely initially,” IPOX CEO Josef Schuster mentioned.

The valuation goal is roughly double Smithfield’s $5.38 billion web asset worth as of Sept. 30.

Smithfield was based in 1936 in its namesake city by the Luter household as a small meat-packing firm. A collection of acquisitions beginning within the Eighties hoisted it as the biggest U.S. pork producer.

The corporate, which competes with Tyson Meals (NYSE:TSN) and Hormel Meals (NYSE:HRL), produces packaged meats and pork merchandise beneath the manufacturers comparable to John Morrell, Cook dinner’s and Gwaltney.

Smithfield, which carved out its European enterprise final 12 months, traded on the New York Inventory Alternate from 1999 till 2013, when WH Group acquired it for $4.7 billion — then the largest Chinese language takeover of a U.S. agency.

Its clients embody retailer Walmart (NYSE:WMT) and fast-food large McDonald’s (NYSE:MCD).

Smithfield will listing on the Nasdaq beneath the image “SFD.”

WH Group will preserve management of Smithfield post-IPO. Morgan Stanley (NYSE:MS), BofA Securities and Goldman Sachs are the lead underwriters.

Smithfield plans to make use of the IPO proceeds to beef up infrastructure, automation and capability growth.