BRIEF: Smithfield targets $400 million fundraising target in New York IPO

Chinese-owned pork producer Smithfield Foods Inc. will raise up to $470 million in its U.S. IPO by selling 14.7 million shares for between $23 and $27 each, the company said in a new filing with the U.S. securities regulator on Wednesday. The listing could raise up to an additional $140 million if demand is strong and the underwriters exercise an overallotment option to sell another 5.22 million shares.

Smithfield said its parent, Hong Kong-listed WH Group (0288.HK), expects to receive net proceeds of about $400 million from the listing and will use the funds for general working capital. A pricing at the top of its range would value the company at about $10 billion.

WH Group first indicated it planned to separately list Smithfield last July, following its overhaul of the U.S. company that it purchased for $4.7 billion in 2013. After a difficult year for the entire pork industry in 2023, Smithfield’s situation stabilized somewhat last year. It reported revenue of $10.2 billion for the first nine months of 2024, down slightly from $10.6 billion in the year-ago period.

By Doug Young

To subscribe to Bamboo Works free weekly newsletter, click here