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Nikkei Markets

Budweiser Underwriters Exercise Greenshoe, Boost IPO Proceeds To $5.75 Bln

Shares up 0.34% after IPO underwriters exercise over-allotment option

HONG KONG (Nikkei Markets) -- Budweiser Brewing Company APAC on Thursday said the underwriters of its initial public offering in Hong Kong have fully exercised an over-allotment option, helping it raise an additional HK$5.88 billion ($750 million) in gross proceeds.

Exercising the option, also known as a greenshoe option, boosted the total size of the IPO to $5.75 billion. Representatives of the IPO’s international underwriters sold an additional 217.8 million shares, or 15% of the base offer, at the offer price of HK$27 a share as the stock advanced following its listing on Monday, according to a filing to the Hong Kong stock exchange. The stock closed on Wednesday at HK$29.70.

The brewer, the regional arm of Anheuser-Busch InBev Group, the world’s largest beermaker, had earlier sold 1.26 billion shares as part of the base offering and an additional 189.4 million shares under a so-called offer size adjustment option, raising HK$39.20 billion ($5 billion) in total.

Even before the greenshoe option was exercised, the IPO was this year’s biggest in Hong Kong, a city that is striving to retain its crown as the world’s largest market for IPOs by funds raised amid the Sino-American trade war and anti-government protests.

AB InBev will control 87.22% of Budweiser Brewing upon exercise of the over-allotment option. The Belgian brewer intends to apply all of the proceeds from Budweiser Brewing to repay its debt.

J.P. Morgan and Morgan Stanley are the joint sponsors for the offering.

Budweiser Brewing shares were trading at HK$29.80, up 0.34%, in early afternoon trading.

-- By Hong Kong Newsroom

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