Smithfield Foods targets up to $10.7 billion valuation in US IPO

(Reuters) -Smithfield Foods is targeting a valuation of up to $10.73 cardinal successful its U.S. archetypal nationalist offering, the Farmland (NYSE:) bacon shaper said connected Tuesday, moving person to its much-anticipated banal marketplace instrumentality successful the state aft much than a decade.

Hong Kong-based WH Group (OTC:), the world's largest pork producer, is spinning disconnected Smithfield into a listed company, arsenic it looks to make a abstracted fundraising level for its U.S. and Mexico businesses.

The U.S. IPO marketplace is acceptable for a historical week arsenic LNG behemoth Venture Global looks to spell nationalist astatine a $110 cardinal valuation.

Smithfield and WH Group are each offering 17.4 cardinal shares, priced betwixt $23 and $27 each, to rise up to $939.6 million.

The IPO would beryllium the largest by a nutrient institution successful the U.S. since Oatly Group (NASDAQ:) AB's $1.6 cardinal listing successful 2021, according to information compiled by LSEG.

The valuation people is astir treble Smithfield's $5.38 cardinal nett plus worth arsenic of Sept. 30.

Smithfield was founded successful 1936 successful its namesake municipality by the Luter household arsenic a tiny meat-packing company. A bid of acquisitions starting successful the 1980s hoisted it arsenic the largest U.S. pork producer.

The institution produces packaged meats and pork products nether the brands specified arsenic John Morrell, Cook's and Gwaltney, and competes with Tyson Foods (NYSE:) and Hormel Foods (NYSE:), among others.

Smithfield, which carved retired its European concern past year, traded connected the New York Stock Exchange from 1999 until 2013, erstwhile it was acquired by WH Group for $4.7 cardinal — past the biggest Chinese takeover of a U.S. firm.

Its customers see retailer Walmart (NYSE:) and fast-food elephantine McDonald's (NYSE:).

WH Group volition support power of Smithfield aft the offering. The institution plans to usage the IPO proceeds to beef up infrastructure, automation and capableness expansion.

Morgan Stanley (NYSE:), BofA Securities and Goldman Sachs are the pb underwriters.

Smithfield volition database connected the Nasdaq nether the awesome "SFD."