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Budweiser’s IPO swagger turns into a drunk stumble

Credit: Reuters Studio
Published on July 12, 2019 - Duration: 01:21s

Budweiser’s IPO swagger turns into a drunk stumble

Budweiser Brewing Company APAC, the Asia-Pacific business of Anheuser-Busch InBev, has guided potential investors towards the bottom of a marketed pricing range for its up to $9.8 billion Hong Kong IPO, two people said.

Pascale Davies reports.

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Budweiser’s IPO swagger turns into a drunk stumble

It may be too early for the brewer of Budweiser to raise a glass just yet.

Budweiser APAC, the Asia unit of AB InBev, delayed pricing its multibillion dollar listing on Friday (July 12).

That according to two people familiar with the matter who spoke to Reuters.

The sources said it received offers from some U.S. investors below the target range, which is between between $8.3 billion and $9.8 billion dollars.

AB InBev, the world's largest brewer boasts more than 50 beer brands including Stella Artois.

The IPO is set to be the year's biggest so far.

According to Refinitiv data, even at the low end of the price range, the IPO would surpass the $8.1 billion dollar New York float of Uber in May.

Investors are keenly watching the pricing as a barometer for other future large share sales, such as Alibaba's Hong Kong IPO.

InBev will want to raise as much capital as it can to reduce its debt pile of more than $100 billion, which it built up with its purchase of rival SABMiller nearly three year ago.

But time is now ticking for the group.

It has until Monday (July 15) to set a price.

If not the IPO will lapse.

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