Smithfield Foods Raises $522 Million in IPO

Key Highlights:

- Smithfield Foods, Inc. (SFD) raised $522 million in its initial public offering (IPO).
- Shares priced below the marketed range at $20 apiece.
- WH Group Ltd. (WHGLY), Smithfield's parent company, maintains control after the listing.

Well-Known Brands and Operations

Smithfield is the world's largest pork producer, selling packaged meats and fresh pork under brands like Eckrich, Nathan's Famous, and its namesake. It operates a hog production business that supplies its fresh pork segment.

Financial Performance and Streamlining

For the nine months ended September 2022, Smithfield reported net income of $581 million on revenue of $10.2 billion. The company has streamlined operations before its listing, separating its European operations and transferring part of its hog farming to Murphy Family Ventures LLC.

Chinese Parent Company and Chairman

Smithfield is owned by WH Group, led by Chairman Wan Long. Wan's net worth exceeds $3 billion and he played a key role in the company's growth, including the acquisition of Smithfield in 2013.

Regulatory and Legal Considerations

Smithfield has expressed concerns about the potential impact of immigration policies on its labor-intensive operations. The company has also faced antitrust allegations and settlements in the pork industry.

IPO Details

Morgan Stanley, Bank of America Corp., and Goldman Sachs Group Inc. led the offering. SFD shares are expected to trade on the Nasdaq Global Select Market.