Smithfield Foods Prices IPO Below Forecast, Raising $521.7 Million

Highlights:

* Smithfield Foods, the largest U.S. pork processor, has priced its initial public offering (IPO) below its forecasted range.
* The IPO raised $521.7 million for the company and its selling stockholder.
* The pork producer's valuation stands at $7.95 billion ahead of its market debut on Nasdaq.
* The offering was priced at $20 per share, below the anticipated $23-$27 range that could have generated up to $939.6 million.
* WH Group, Smithfield's parent company, remains the majority shareholder after the IPO.

Market Impact:

* Smithfield's IPO follows Venture Global's recent IPO that fell short of expectations.
* The company's debut may indicate the market's sentiment towards Trump administration's proposed tariffs on Mexican imports.
* Smithfield employs approximately 2,500 workers in Mexico and has identified tariffs as a risk factor.
* Despite the potential concerns, Smithfield's long-standing history and profitability may enhance its appeal among investors.

Historical Background:

* Founded in 1936 as The Smithfield Packing Company, Smithfield Foods has a portfolio of brands including Eckrich and Nathan's Famous.
* The company was publicly traded in New York from 1999 to 2013 when WH Group acquired it for $4.7 billion.
* Morgan Stanley, BofA Securities, and Goldman Sachs acted as lead underwriters for the recent IPO.

Trading Information:

* Smithfield's shares will begin trading on the Nasdaq under the ticker symbol "SFD" on Tuesday.