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Anheuser-Busch InBev NV, citing market conditions, has suspended the initial public offering for its Asia Pacific unit in which it sought to raise as much as $9.8 billion.
The brewery giant said in a statement that it has decided for now not to proceed with the IPO of Budweiser Brewing Company APAC Ltd. Bloomberg reported that the company was struggling to price its shares in Hong Kong on Friday as planned in what would have been the year’s biggest listing.
“The company is not proceeding with this transaction due to several factors, including the prevailing market conditions,” AB InBev said in the statement. “The company will closely monitor market conditions, as it continuously evaluates its options to enhance shareholder value, optimize the business and drive long-term growth, subject to strict financial discipline.”
AB InBev’s American depositary receipts fell as much as 4.9% and were down 3.9% to $86.16 at 2:58 p.m. in New York trading.
Budweiser’s decision to halt its share sale comes after Swiss Re AG announced on Thursday it was suspending an IPO of its $4.1 billion ReAssure Group Plc unit, citing weak investor demand.
AB InBev’s Asia unit was offering 1.63 billion shares in its IPO at HK$40 to HK$47 each, its prospectus shows.
JPMorgan Chase & Co. and Morgan Stanley were leading the offering. The IPO — even at the bottom of its targeted range — would have topped Uber Technologies Inc.’s $8.1 billion listing, which remains the biggest globally this year.
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