Home / Business / AB InBev IPO: The world's largest brewery can revive its massive stock exchange listing from Hong Kong

AB InBev IPO: The world's largest brewery can revive its massive stock exchange listing from Hong Kong



The world's largest brewery said in a statement Thursday that there is no guarantee that the transaction will go through "and the decision to continue will depend on a number of factors and prevailing market conditions."
Asian stock markets have been turbulent this year, largely due to the US-China trade war. Hong Kong's Hang Seng index has fallen 5.1% since the beginning of July, hit by a political crisis that has seen months of mass demonstrations.
AB InBev hoped to raise as much as $ 9.8 billion by listing Budweiser Brewing Company APAC, Asia's largest retail brewery, before taking the planned July offer. The IPO would have topped Uber ( UBER ) which raised $ 8.1
billion in New York in May.
  The Budweiser beer empire was built on debt. Now it is competing to pay it

AB InBev could use the funds to reduce his enormous debt burden. The company has already taken steps to stabilize its balance sheet, cut its dividend to half last year and unload its Australian operations for $ 11.3 billion in July.

AB InBev became the world's best brewery by borrowing money to finance a series of acquisitions. The company's latest mega-acquisition, by SABMiller, increased its debt to $ 102.5 billion in 2018.

An Asia IPO can also help the company in China, the world's largest beer market. AB InBev's sales in the country increased by 8.3% last year, with brands such as Budweiser and Corona particularly successful.

The listing would be a profit for the Hong Kong Stock Exchange. Reports surfaced last month that Internet giant Alibaba ( BABA ) would delay plans to raise $ 15 billion through a secondary listing in Hong Kong amid ongoing political turmoil. Alibaba refused to comment at the time.

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