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AB InBev raises $5B after pricing Hong Kong IPO at bottom of range

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AB InBev raises $5B after pricing Hong Kong IPO at bottom of range

Anheuser-Busch InBev SA said Sept. 24 it has decided to proceed with the Hong Kong listing of its Asian arm Budweiser Brewing Co. APAC Ltd. nearly two months after aborting the plan and has priced the IPO at HK$27, the bottom of its indicative range, confirming earlier reports.

The brewer would offer 1,262,350,000 shares, or 9.53% of its outstanding stock, at its second shot at the IPO. The Budweiser-maker said it also partially exercised an offer size adjustment option to issue an additional 189,354,000 shares for a total of 1,451,704,000 shares.

AB InBev said the gross proceeds of the offering is expected to be HK$39.2 billion or approximately $5 billion prior to any exercise of the overallotment option by the underwriters. The company is offering underwriters an overallotment option of 217,755,000 additional shares and expects to raise $5.75 billion if the option is exercised in full.

The brewer said net proceeds of the offering will be used to pay its debt.

After the transaction, AB InBev will control 88.86% of Budweiser Brewing if the overallotment is not exercised and 87.22% if the option is exercised in full.

The deal would be half the size of the amount that AB InBev initially aimed to raise at its aborted IPO attempt in July, in what would have been the world's biggest IPO in 2019. Investors had balked at the price of then, which was offered at between HK$40 and HK$47.

The stock will begin trading Sept. 30 under the ticker 1876. JPMorgan Chase and Morgan Stanley are joint sponsors of the deal.