Chinese pig breeder Muyuan Foods courts cornerstone investors for Hong Kong listing
Thai conglomerate expected to join a group of cornerstone investors in a deal that could raise about US$1.5 billion
Thailand’s Charoen Pokphand Group plans to invest in the Hong Kong listing of Chinese pig breeder Muyuan Foods, people familiar with the matter said, in what is shaping up to be one of the city’s largest share sales this year.
CP Group was poised to participate as a cornerstone investor – which typically receives a guaranteed allocation in exchange for agreeing to hold shares for a set period – in the listing, the people said, asking not to be identified to discuss a private matter.
Other potential cornerstone investors included investment firm Fidelity International and UBS Group’s asset management arm, the people added.
Muyuan, one of the world’s biggest pig breeders and pork producers, was set to start taking investor orders as early as Thursday for a listing that could raise about US$1.5 billion, the people said.
Deliberations are ongoing, and details of the deal may still change. Representatives for Muyuan, CP Group, Fidelity and UBS declined to comment.
The Henan-based firm is among a crop of Chinese companies in the consumer industry that are defying China’s sluggish consumer demand to sell shares in Hong Kong. Energy-drink maker Eastroc Beverage Group is close to debuting in the city, while snack retailer Busy Ming Group saw a first-day pop.