US Pork Giant Smithfield Foods Raises $522M After Pricing IPO Below Range

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Smithfield Foods and its Chinese parent raised around $522 million from the U.S. pork giant’s initial public offering after pricing shares below their marketed range.
The IPO marks a return to a U.S. listing for the Smithfield, Va.-based company, which went private when China’s WH Group acquired it for almost $5 billion in 2013.
Hong Kong-listed WH Group will continue to own about 90% of Smithfield, which is expected to begin trading on the Nasdaq Tuesday under the ticker “SFD.”

Smithfield Foods and its Chinese parent raised around $522 million from the U.S. pork giant’s initial public offering (IPO) after pricing shares below their marketed range.

The IPO marks a return to a U.S. listing for the Smithfield, Va.-based company, which went private when China’s WH Group acquired it for nearly $5 billion in 2013. Its pricing, however, signals that the company had overestimated demand for the IPO, which is hitting the market as bankers prepare for an expected boom in deals this year.

On Tuesday, Smithfield and Chinese owner WH Group priced a total of nearly 26.1 million shares at $20 each. The two had originally offered 34.8 million shares at $23 to $27 apiece.

WH Group Will Continue to Hold Majority of Smithfield

WH Group’s acquisition of Smithfield over a decade ago was then the biggest purchase by a Chinese firm of a U.S. one, according to Dealogic data. The Hong Kong-listed firm will continue to own about 90% of Smithfield.

Apart from pork production, Smithfield sells packaged meat under its own namesake brand as well as Eckrich, Nathan’s Famous, and Farmer John. Smithfield is expected to begin trading on the Nasdaq Tuesday under the ticker “SFD.”