Leading pork producer Muyuan Foods Co. Ltd. (2714.HK; 002714.SZ) launched its Hong Kong IPO on Thursday, in one of the year’s first major food listings that will raise more than $1 billion. The company plans to sell about 274 million Hong Kong-listed H-shares for up to HK$39 apiece, raising up to HK$10.5 billion ($1.35 billion), according to its launch announcement.
Muyuan said it plans to use 60% of the proceeds for global expansion and market diversification. Another 30% will go to R&D, with the remainder to be used as working capital. Sixteen cornerstone investors have agreed to purchase $685 million worth of shares, or about half of the offering, led by a $200 million investment by Thailand’s Charoen Pokphand Foods.
Muyuan reported 112 billion yuan ($16.1 billion) in revenue in the first nine months of last year, up 16% from 96.8 billion yuan in the year-ago period. Its profit in the first nine months of last year rose 35% to 15.1 billion yuan from 11.2 billion yuan a year earlier.
By Doug Young
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