Deals
Why Budweiser and Bankers Failed to Sell the King of IPOs
- Competitors challenge top foreign brewer in Chinese market
- AB InBev needs plan B to lower debt after listing failure
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For months, executives from Anheuser-Busch InBev NV raced to prepare for a listing of its Asian subsidiary, Budweiser Brewing Company APAC Ltd. It was to be this year’s biggest initial public offering and would surpass Uber Technologies Inc.’s $8.1 billion share sale.
The hope had been that the Belgian company’s leading position in the premium beer market in China -- with its millions of drinkers -- would justify a target to raise as much as $9.8 billion, for a valuation of $64 billion. But on Friday, AB InBev discovered that wasn’t enough to convince investors to splurge on the King of Beers, forcing it to dial back its ambitions and shelve plans for the mammoth IPO in Hong Kong.