PE-Backed WH Group Plans To Raise $5.3B In HK IPO

Hong Kong-based pork company WH Group is planning an IPO in Hong Kong to raise as much as HK$41.1 billion ($5.3 billion), according to a prospectus filed by the company.

This IPO will value WH Group at a maximum of US$21.2 billion.

The company will issue about 3.66 billion new shares at HK$8.0 to HK$11.25 per share.

WH Group says it will use the proceeds on credit repayment and general operation.

Beijing-based alternative investment firm CDH Investments is the single largest shareholder in WH Group, holding a 38.1% stake. The management team of the company holds 42.6%.

Other shareholders include a PE unit of Goldman Sachs, which invested in WH Group in 2006, Singapore state investment company Temasek Holdings, and New Horizon Capital, both of whom invested in the company in 2009.

If and which shareholders are selling shares during the IPO are not disclosed in the filing.

WH Group, formerly known as Shuanghui International, is a majority shareholder in Henan Shuanghui Investment & Development Co., Ltd., China’s largest meat processing business.

The company acquired the largest pork producer in the U.S., Smithfield Foods, Inc. in 2013.

Bookrunners for the IPO include BOC International, Morgan Stanley and Standard Chartered.

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