Smithfield Foods on Monday made public its paperwork for an initial public offering in the United States, as the maker of Farmland bacon and Farmer John sausages prepares for its U.S. stock market return after more than a decade.
Analysts and banking executives expect 2025 to be a bumper year for IPOs, thanks to lower interest rates and a strong list of companies waiting to tap public markets.
Hong Kong-based WH Group, the world’s largest pork producer that took Smithfield private in 2013 for $4.7 billion (C$6.75 billion), will sell some of its shares in the Virginia-based company in the offering, along side the company.
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WH Group said in October the IPO is expected to represent an offering of up to 20 per cent of Smithfield shares on a fully diluted basis and value the company at no less than $5.38 billion ($7.73 billion).
Smithfield, which separated its European operations last year in preparation for the U.S. IPO, confidentially filed for the New York flotation on Oct. 4.
The company reported a net income of $581 million (C$834 million) in the nine months ended Sept. 29 on sales of $10.19 billion (C$14.63 billion).
That compares with a net loss of $2 million (C$2.9 million) in the nine months ended Oct. 1, 2023 on sales of $10.64 billion (C$15.28 billion).
Smithfield was founded in 1936 as a packing company in Virginia. Since then, it has grown into one of the major producers of packaged meats and fresh pork products.
It was listed on the New York Stock Exchange from 1999 until its acquisition in 2013.
Smithfield will list on the Nasdaq Global Select Market under the symbol “SFD.”
The proceeds from the listing will be used for general corporate purposes, including capital investments in infrastructure, automation, and capacity expansion, Smithfield said.
Morgan Stanley, BofA Securities and Goldman Sachs are the lead underwriters.
— Reporting by Arasu Kannagi Basil in Bengaluru
