Smithfield Foods IPO Priced Below Forecast, Raises $521.7 Million
Smithfield Foods (SFD), the largest U.S. pork processor, has priced its initial public offering (IPO) at $20 per share, below its previously forecasted range of $23-$27.
The IPO raised $521.7 million, with $260.9 million raised by Smithfield Foods and the remainder by the selling stockholder, a unit of parent company WH Group. WH Group will remain a majority shareholder following the IPO.
Smithfield Foods' IPO comes shortly after Venture Global's unsuccessful IPO, which failed to meet expectations last week. Smithfield Foods' performance could provide insights into investors' risk appetite in the current market.
Despite the potential impact of tariffs on its Mexico operations, Smithfield Foods' long-term profitability and established brands may appeal to investors seeking stable investments.
The company's shares will begin trading on the Nasdaq under the symbol "SFD" on Tuesday. Smithfield Foods was founded in 1936 and has a portfolio that includes brands such as Eckrich and Nathan's Famous. It was previously listed on the New York Stock Exchange from 1999 until 2013, when it was acquired by WH Group.
Morgan Stanley, BofA Securities, and Goldman Sachs acted as lead underwriters for the offering.