PE-Backed WH Group Completes $2B HK IPO

Chinese pork producer WH Group has completed an IPO today in Hong Kong, selling 2.567 billion shares at HK$6.20 per share, raising a total of HK$15.9 billion (US$2 billion).

Despite a significantly smaller IPO size and a previous cancellation due to unaccommodating market conditions, the float attracted 54 times of over-subscription for its shares, and began trading today at HK$6.8 apiece, 9.7% higher than the final IPO price.

Beijing-based alternative investment company 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.

These shareholders did not sell shares during the IPO.

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

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