World’s Biggest Pork Producer Smithfield Files for US IPO

Smithfield: So, guess what? Smithfield Foods, the biggest pork producer in the world, just filed for an IPO in the US. They’re joining a bunch of other companies looking to hit the market this year.

According to their filing, both Smithfield and a subsidiary of their owner, WH Group, are offering shares. But don’t worry, WH Group will still be in charge after the listing.

They’re planning to sell about 20% of Smithfield, which could value the company at over $5.38 billion. This is a big deal, especially since WH Group bought Smithfield for $4.7 billion back in the day, marking the largest Chinese takeover of a US company at that time.

This IPO could signal a comeback for the US IPO market, which has been a bit slow lately. Last year, first-time share sales raised $43 billion, but that’s still below the $58 billion average from before the pandemic.

Smithfield’s doing pretty well, too. They reported a net income of $581 million on $10.2 billion in revenue for the first nine months of this year. That’s a big turnaround from a loss last year.

Based in Smithfield, Virginia, the company makes all sorts of packaged meats and fresh pork. They’ve got popular brands like Eckrich and Nathan’s Famous, and they employ around 34,000 people in the US and about 2,500 in Mexico.

Big names like Morgan Stanley, Bank of America, and Goldman Sachs are leading the offering. Smithfield plans to list on the Nasdaq under the symbol SFD.

They’re looking to use the IPO proceeds for things like infrastructure improvements and expanding their capacity. Sounds like they’ve got some big plans ahead!

By the way, WH Group is a major player in the pork industry in China, and it was founded by billionaire Wan Long. He’s been with the company since the late ’60s and has turned it into a food giant.

But it hasn’t all been smooth sailing. There’s been some family drama over management and succession, which has affected WH Group’s stock price. It’s a wild ride in the business world!