The world's number one brewer said in a statement that "it is not proceeding with the announced public offering of a minority stake in its Asia Pacific subsidiary, Budweiser Brewing Company APAC Limited, on the Hong Kong Stock Exchange."
The statement said several factors were attributable, but only citing "the prevailing market conditions," without specifying other factors.
The company planned to raise up to 9.8 billion U.S. dollars through the listing, topping Uber's 8.1-billion-dollar fundraising in New York earlier this year. Its stocks were expected to be priced no later than Monday, according to the prospectus.
Analysts said investors were inclined to accept a price at lower end of the range between 40 Hong Kong dollars (5.11 U.S. dollars) and 47 Hong Kong dollars (6 U.S. dollars) per share written in the prospectus, a huge gap with the expectation of offerors, likely a major cause of the cancellation.
Despite the changed plan, "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," the statement said.
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