Chinese pork processor WH Group has abandoned plans to list in Hong Kong, citing poor market conditions and volatility.
The world’s largest pork producer announced plans to launch an initial public offering that aimed to raise around HK$42bn (US$5.3bn) earlier this month.
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In an announcement to the stock exchange today (28 April) the firm said it had decided to drop its plans. “In light of deteriorating market conditions and recent excessive market volatility, the company, having consulted the joint sponsors, has decided that the global offering will not proceed at this time,” WH Group said.
WH Group acquired US pork giant Smithfield Foods last year for US$4.7bn plus the assumption of debt. The company had intended to use a significant proportion of the proceeds from the IPO to pay down loans associated with the takeover.
