AB Inbev blows off IPO of the Asia division

16-Jul-2019 - Hong Kong

AB Inbev, the world's largest beer brewer, is breaking off the planned IPO of its Asian business. In a statement released on Friday evening, the company referred to several factors, including the prevailing market conditions. In New York, the share price of AB Inbev slowed an initial reaction by four and a half percent.

Previously, the news agency Bloomberg had reported, citing people familiar with the matter, that the IPO would only meet with meagre demand. The banks involved would have difficulty finding sufficient interested parties within the target price range of 40 to 47 Hong Kong dollars (4.54 to 5.33 euros) per share. AB Inbev is now considering postponing the IPO and adjusting the conditions.

At the beginning of May, the producer of beers such as Budweiser and Beck's had confirmed that he would possibly sell a minority stake in the Asian business via an IPO in Hong Kong. At that time, people familiar with the matter had spoken of a valuation of up to 70 billion US dollars (62.5 billion euros). A sale of shares could therefore bring AB Inbev more than five billion dollars.

The move could have helped AB Inbev reduce debt and address acquisitions in the Asia Pacific region. Since buying rival SABMiller for more than $100 billion in 2016, the Group's debt has risen sharply /mis/eas/stk/he (dpa)

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https://www.yumda.com/en/news/1161933/ab-inbev-blows-off-ipo-of-the-asia-division.html