Friday, July 10, 2020
Martin Hennecke

Brewer looks to lower end in IPO pricing
<p>Budweiser Brewing Company APAC, the Asia-Pacific business of Anheuser-Busch InBev, has guided potential investors toward the bottom of a pricing range for its up to HK$76.45 billion Hong Kong initial public offering.</p><p>The books closed yesterday. It&#39;s retail tranche is reportedly about nine times oversubscribed. The IPO is set to be priced today.</p><p>Budweiser APAC is due to begin trading on July 19 and did not introduce cornerstone investors. It is selling about 1.6 billion shares at HK$40 to HK$47 apiece, seeking to raise between HK$65.08 billion and HK$76.45 billion, much of which will go toward paying debt at its highly leveraged parent.</p><p>Even at the low end of the price range, the IPO would surpass the US$8.1 billion (HK$63.18 billion) New York float of Uber in May, the biggest globally this year, Refinitiv data shows.</p><p>Meanwhile, four companies start trading on the main board today.</p><p>In the Bright Smart gray market last night, shares of local engineering services provider Analogue (1977), controlled by Otto Poon Lok-to, the husband of Hong Kong Secretary for Justice Teresa Cheng Yeuk-wah, slumped 10 percent to HK$1.08, becoming the worst performer among the four new stocks.</p><p>Analogue has raised HK$335.7 million after pricing its IPO at HK$1.2. Its retail tranche was 6.59 times oversubscribed.</p><p>The company revealed that the top 10 shareholders own 85.22 percent of shares and the top 25 shareholders hold 91.09 percent. &quot;Shareholders and prospective investors should be aware that the price of the shares could move substantially with a small number of shares traded and should exercise caution when dealing in the shares,&quot; the company warned.</p><p>For the other three stocks, IVD Medical (1931) slid 1.30 percent to HK$3.03, Hevol Services (6093) rose 48.44 percent to HK$1.9, and World Super (8612) was up 27.27 percent to HK$0.7 in the gray market last night.</p><p>CIMC Vehicles (1839), a subsidiary of China International Marine Containers (2039), closed at HK$6.14, 3.76 percent lower than its IPO price of HK$6.38.</p>

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