Chinese pork producer Muyuan mulls US$1 billion secondary Hong Kong listing
Muyuan Foods, one of the world's biggest pig breeders and pork producers, is considering a second listing in Hong Kong that may help it to raise at least US$1 billion, according to people familiar with the situation.
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The Chinese company is seeking to hire banks to prepare for a possible share sale that could take place as soon as this year, the people said, asking not to be identified as the information is not public.
Deliberations are ongoing and details including size and timing could change, the people said. Representatives for Muyuan did not immediately respond to requests for comment.
Founded in 1992, Muyuan listed in Shenzhen in 2014. Its shares have dropped about 3 per cent this year, and 19 per cent from the end of September, giving the company a market value of 204 billion yuan (US$28 billion). The Shenzhen Stock Exchange Composite Index has risen about 6 per cent this year.
Electric vehicle battery maker CATL is likely to raise funds in Hong Kong this year. Photo: Reuters
China has faced a glut in many agricultural products, including pork, whose output surged as the country recovered from a widespread outbreak of African swine fever. The surplus in supply and weaker demand for meat as the economy falters are expected to weigh on pig farmers' margins this year.
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