AB InBev’s Asia-Pacific unit Budweiser Brewing Company APAC Ltd (1876.HK), which raised about USD 5 billion after relaunching its IPO this month, rose more than 6% on its market debut in Hong Kong, easing concerns of the impact of ongoing protests on investor sentiment.
Second largest IPO globally after Uber
The Budweiser APAC IPO is the second-biggest globally so far this year, behind the USD 8.1 billion flotation of Uber Technologies Inc in May. The IPO was relaunched this month after a plan for a July listing was cancelled due to factors including the prevailing market conditions.
“Obviously these are challenging times in Hong Kong, but we are very confident in the strong foundation here and we are very optimistic for the bright future of Hong Kong as one of the most important financial centres in Asia,”– Budweiser APAC Chief Executive Jan Craps
Company’s China growth story drives share price
Budweiser APAC shares rose as high as HKD 28.90 on Monday, versus their IPO price of HKD 27 per share. The stock closed the day at HKD 28.20, up 4.4%, while the Hang Seng Index gained 0.5%.
“The performance is much better than expected, and it’s mainly helped by demand from institutional investors who are confident about the company’s growth story, mainly in China,”– Steven Leung, Sales Director at UOB Kay Hian Hong Kong