AB InBev has priced its Budweiser IPO at HK$27 (R51.24) a share and the group said on Wednesday that it intended to apply all of the net proceeds from the offering to repay its debt.
AB InBev’s debt escalated when it acquired SABMiller, for $100bn in October 2016. The group shelved the IPO of its Asian business in July, in which it hoped to raise up to $9.8bn, due to several factors, which included the “prevailing market conditions” at the time. The owner of brands such as Corona, Budweiser and Stella Artois, said at the time that it would evaluate its options in the near future.
The group has more than 500 brands across the globe. With the IPO back on track, the group has created a room for an over-allotment option to cover market demand.
“The company has also partially exercised an offer size adjustment option, issuing an additional 189.35 million shares for a total of 1.45 billion shares to cover demand.