Smithfield Foods IPO Expected to Price Below Range
Smithfield Foods Inc. and its owner WH Group Ltd. are considering pricing their initial public offering (IPO) at $20 per share, below the previously marketed range.
Despite the lower price point, demand for shares has reportedly exceeded the supply, with the offering fully subscribed. Smithfield and WH Group had initially aimed to sell 17.4 million shares each for $23-$27 per share.
The final pricing and subscription details could still change, and no firm decisions have been made. Smithfield declined to comment, while WH Group did not respond to requests for comment outside of regular business hours.
Smithfield Foods produces and distributes packaged meats and fresh pork under various brand names, including Eckrich, Nathan's Famous, and its namesake label. The company also operates a hog production business.
For the nine months ended September 29, Smithfield reported net income of $581 million on revenue of $10.2 billion, compared to a net loss of $2 million on revenue of $10.6 billion in the previous year.
WH Group, which acquired Smithfield over a decade ago, will retain control of the company after the IPO. Morgan Stanley, Bank of America Corp., and Goldman Sachs Group Inc. are leading the offering.
Smithfield Foods is expected to list on the Nasdaq Global Select Market under the ticker symbol SFD.