PE-Backed WH Group Cancels HK IPO Plan

Hong Kong-based pork company WH Group says that it has cancelled its IPO in Hong Kong Stock Exchange due to deteriorating market conditions and recent excessive market volatility, according to a company announcement.

WH Group said on April 14 that it planned to issue about 3.66 billion new shares at HK$8.0 to HK$11.25 per share, raising as much US$5.3 billion.

On April 25, the company submitted a supplemental prospectus to cut the size of the offering, raising up to $1.9 billion.

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 private equity 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.

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.

Earlier this week, Beijing-based Chinese security software maker Cheetah Mobile Inc. also cut its planned U.S. IPO size by over one-third.

Yesterday, Cheetah says its parent Kingsoft Corporation, Xiaomi Inc. and Baidu Inc. will subscribe a total of US$50 million shares in its IPO.

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