Anheuser-Busch scraps its US$9.8 billion IPO for Budweiser in Hong Kong, scuppering world’s largest fundraising plan of 2019

The world’s brewer has cited ‘prevailing market conditions’ as one of the factors for its decision to scupper the IPO of its Budweiser unit

The brewer will continue to evaluate its options to enhance shareholder value, Anheuser-Busch said in a statement

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Anheuser-Busch’s US$9.8 billion Budweiser IPO received a cool reception in Hong Kong. Photo: Shutterstock

Published: 11:08am, 13 Jul 2019Updated: 12:16am, 14 Jul 2019

Anheuser-Busch InBev has scrapped what could have been the largest global initial public offering (IPO) of 2019 in Hong Kong, in a setback to the city’s plan to catch up with New York as the world’s fundraising hub.

“The company is not proceeding with this transaction due to several factors, including the prevailing market conditions,” Anheuser-Busch said in its announcement to scupper its US$9.8 billion IPO. “The company will closely monitor market conditions, as it continuously evaluates its options to enhance shareholder value, optimise the business and drive long-term growth, subject to strict financial discipline.”

The decision came after the unit Budweiser Brewing Company APAC failed yesterday to price its IPO, which was expected to be offered at the lower end of a range of between HK$40 and HK$47 per share, according to a person familiar with the IPO, and a fund manager briefed by bookrunners of the deal.

According to its financing schedule, Anheuser-Busch had to price its Budweiser stock by Monday, for the shares to debut on July 19 in Hong Kong. Depending on the final pricing, Budweiser would potentially have raised US$8.3 billion to US$9.8 billion from the listing, surpassing Uber, which raised US$8.1 billion in New York in May to become the world’s largest IPO this year.

Hong Kong third in global IPO rankings for stock exchanges

Belgium-based Anheuser-Busch picked an inopportune time to tap the financial markets, as Hong Kong is still reeling from the aftermath of a controversial extradition bill, where thousands of protesters still take to the streets around the city, more than a month after 1 million people voiced their opposition in a mass rally.