SCMP Editorial

Editorial | Public offerings at risk of hangover despite cheer from Budweiser

Decision by world’s largest brewer to go ahead with slimmed down listing in city wracked by protests is welcome news, but this is not the time for complacency

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More listings are expected to follow Budweiser, which at an estimated US$4.8 billion, is the second-largest globally since Uber Technologies’ US$8.1 billion listing in New York in May. Photo: Bloomberg

SCMP Editorial

Published: 10:56pm, 20 Sep 2019Updated: 4:45am, 21 Sep 2019

It has been a dry season for initial public offerings. So it is welcome news that Budweiser Brewing Company APAC will list in Hong Kong, after scrapping an attempt to go public in July.

Market sentiments have turned more positive. More listings are expected to follow Budweiser, which at an estimated US$4.8 billion, is the second-largest globally since Uber Technologies’ US$8.1 billion listing in New York in May.

Investors have become more optimistic since the summer of discontent as Chinese and American negotiators are about to resume trade talks. The Hong Kong government’s shelving of the controversial extradition bill also briefly boosted market sentiments.

Of course, markets can turn on a dime. Chinese-American trade talks can easily falter again. The ongoing anti-government unrest may continue and even escalate, despite the government’s olive branch.

This may well be a lull before the return of market volatility. For now, though, besides Budweiser, there is a slew of IPOs to keep up investors’ interest.

Among these are logistics real estate developer ESR Cayman and Home Credit, a China-focused consumer finance lender.