WH raises HK$2.35b through over-allotment option
Chinese meat producer WH Group raised additional net proceeds of HK$2.35 billion from the full exercise of its over-allotment option on Wednesday.
WH Group, which listed on the Hong Kong Stock Exchange on Tuesday, raised additional net proceeds of HK$2.35 billion from the full exercise of its over-allotment option on Wednesday, the Chinese meat producer announced on Thursday morning.
As a result, 385.11 million shares, representing 15 per cent of the shares in the initial public offering, will be allotted at the offer price of HK$6.20 per share. The shares in the over-allotment option will start trading at 9am on Monday.
WH raised net proceeds of HK$15.28 billion through the IPO. The company, formerly called Shuanghui International, unsuccessfully tried to list in Hong Kong in April with the aim of raising much higher proceeds of US$6 billion.
The earlier IPO failed because of a combination of factors, including poor market conditions, a disclosure of massive payments to two company executives and conflicting messages to investors from a record 29 investment bookrunners.
Part of the proceeds from the IPO will be used to repay debt incurred from WH’s US$4.7 billion acquisition of US pork producer Smithfield Foods last year.
