Dive Brief:
- Shares in WH Group soared as the world's largest pork company endeavored on its second attempt at an initial public offering. The company is looking to raise money to cover its $4.9 billion purchase of Smithfield Foods.
- By the close of trading in Hong Kong, WH Group's new stock had climbed 7.2% from the offering price.
- The successful IPO comes just three months after WH Group had to retreat from an earlier IPO plan as markets balked at the price.
Dive Insight:
The folks at WH Group and its investment banks are breathing a sigh of relief today. Celebrations are in order.
Still, as successful as the IPO was, it's worth noting that it is much, much smaller than what WH Group had originally planned. Today's IPO raised about $2 billion. Back in April, WH Group was still talking about an offering worth $5.3 billion. The gap between what was planned and what was actually raised takes on new significance when you remember that WH Group paid a full $4.9 billion late last year to buy Smithfield.