Smithfield Foods Targets $10.73B Valuation in US IPO

Smithfield Foods, the largest pork producer in the Americas, announced that it aims for a valuation of up to $10.73 billion in its upcoming US initial public offering (IPO). This marks a significant milestone in the company's return to the US stock market after over a decade.

IPO Details

Smithfield and its parent company, WH Group, are offering 17.4 million shares each, priced between $23 and $27 per share. The IPO is expected to raise up to $939.6 million, roughly double Smithfield's net asset value as of September 30, 2023.

Company Overview

Founded in 1936, Smithfield has grown into a leading meat-packing company. Its current product portfolio includes packaged meats and pork products under various brands such as John Morrell, Cook's, and Gwaltney. The company's customers include retail giant Walmart, fast-food chain McDonald's, and food distributor Sysco.

Return to US Stock Market

Smithfield previously traded on the New York Stock Exchange from 1999 until 2013 when it was acquired by WH Group for $4.7 billion. This IPO marks the company's return to the US stock market and is expected to provide a separate fundraising platform for its US and Mexico operations.

Use of Proceeds

The proceeds from the IPO will be utilized to enhance Smithfield's infrastructure, automation, and capacity expansion. The company's long-term goal is to remain the leading pork producer in the Americas.

Underwriters and Listing

Morgan Stanley, BofA Securities, and Goldman Sachs are serving as the lead underwriters for the IPO. Smithfield's shares will be listed on the Nasdaq under the ticker symbol "SFD."