Iconic U.S. pork producer Smithfield Foods (SFD Proposed) filed its S-1 for its IPO early today – Monday, Jan. 6, 2025 – in what could be the new year’s first major IPO. Although estimated IPO proceeds are $100 million, a placeholder figure, this IPO has the potential to raise at least two to three times that amount.
Morgan Stanley, BofA Securities, Goldman Sachs, Barclays, Citigroup and UBS Investment Bank are the joint book-runners.
Smithfield Foods is profitable: Net income was $450 million on revenue of $14.2 billion for the 12 months that ended Sept. 29, 2024, according to the prospectus. The company has about $2 billion in long-term debt, according to financial statements in the prospectus.
The company says it intends to use the net IPO proceeds for general corporate purposes, including capital investments in infrastructure, automation and capacity expansion.
WH Group acquired Smithfield Foods for $4.7 billion in 2013, which became one of the largest takeovers of an American business by a Chinese company at the time, according toMeat + Poultry, an industry publication. Smithfield was eventually delisted from the New York Stock Exchange. Over time, the company raised more than $2.3 billion and went public in the Hong Kong market in 2014, according to Meat + Poultry.
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