Chinese pork group Shuanghui International is understood to have hired six banks to assist in a Hong Kong IPO.
According to a Reuters report, the company could look to raise around US$6bn by listing on the Hong Kong stock exchange, making it the region’s largest stock offering in four years.
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The potential deal size, however, is subject to change. Citing one source familiar the matter, Reuters noted that it could go as high as $6bn, while another told the publication it was more likely to be in the $3-4bn range.
The listing is expected to take place in the second quarter of 2014.
The company downplayed previous rumours it was preparing an IPO in July. A spokesperson for Shuanghui told just-food the company remained focused on completing its acquisition of US meat firm Smithfield Foods and was “not aware” of any plans to list.
The firm, however, did not return a request for comment on the latest reports at the time of going to press.
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By GlobalDataShuanghui’s acquisition of Smithfield was the largest ever acquisition of a US company by a Chinese firm, valued at $1.7bn.
An IPO would allow Shuanghui to pay down debt borrowed for the acquisition and provide an exit for investors such as CDH, one of China’s biggest and oldest private equity firms which has looked to sell its stake in the company for some time, according to Reuters.
