Smithfield Foods IPO Aims to Raise $940 Million in Major US Food Listing

Smithfield Foods Inc., the world's largest pork producer, is seeking to raise up to $940 million in an initial public offering (IPO) on the Nasdaq Global Select Market under the symbol SFD.

Offer Details

Smithfield and its selling shareholder plan to offer 17.4 million shares each at a price range of $23 to $27 per share. At the top of the range, the IPO would be the largest by a food company in the US since Oatly Group AB's $1.6 billion listing in 2021.

Parent Company Control

Smithfield's parent company, WH Group Ltd., will maintain control of the company after the IPO. WH Group acquired Smithfield over a decade ago.

Market Optimism

The planned offering bolsters optimism for a recovery in the US IPO market, despite rising Treasury yields. Venture Global Inc. recently announced plans to raise $2.3 billion in what would be the largest US IPO by an energy firm since 2013.

Well-Known Brands

Smithfield's product portfolio includes packaged meats and fresh pork sold under well-known brands such as Eckrich, Nathan's Famous, and its eponymous line.

Financial Performance

In the nine months ended September 29, 2022, 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 same period a year ago.

Operations Streamlining

Smithfield has been streamlining its operations ahead of the IPO, including separating its European operations and transferring part of its hog farming operations to a new venture.

Chinese Parentage

Smithfield's Chinese parent, WH Group, is headed by 84-year-old Chairman Wan Long, who is worth over $3 billion.

Legal Matters

Smithfield has been involved in antitrust lawsuits in the pork industry and has paid $194 million to settle claims. The company intends to defend against similar pending claims.

Underwriters

The offering is being led by Morgan Stanley, Bank of America Corp., and Goldman Sachs Group Inc.

Disclaimer: This information is for informational purposes only and should not be construed as investment advice.