AB InBev renews Asian IPO attempt

Belgian beer giant AB InBev is trying again to get its Asian subsidiary, the Budweiser Brewing Company, floated on the Hong Kong stock exchange. Two months ago, the first attempt failed due to lack of interest.

Second chance

The company says it has “resumed its application for the listing of a minority stake of its shares on the Hong Kong Stock Exchange”. An earlier attempt to bring the company to the HKSE failed miserably as – mostly American – investors thought the initial price was too high. AB InBev was hoping the IPO would result in nine billion euros in new capital, a sum that the company needs to lower its huge ninety billion euro debt, which is largely caused by the acquisition of SAB Miller in 2016.

After that disappointment, the tables have turned however for the world’s largest brewery group: CEO Carlos Brito sold the Australian activities to Japanese group Asahi for a record amount, boosting AB InBev’s share price. A debt rescheduling had already boosted that price with over 50 % compared to the start of 2019.

However, AB InBev emphasises in its press release that it can not guarantee the completion of the IPO: “the decision to proceed will depend on a number of factors and prevailing market conditions.”