AB InBev cancels largest IPO

The maker of Stella Artois and Budweiser beers has scrapped its planned listing in Hong Kong, cancelling what would have been the world’s largest initial public offering in 2019.

This is a blow to Hong Kong, which has been battling to win listings by global groups at a time of US-China trade tension. It also comes after a month of mass protests in the city over a controversial extradition bill.

Anheuser-Busch InBev, the world’s biggest brewer, was hoping to raise nearly $10bn in listing its Asia Pacific subsidiary Budweiser Brewing Company APAC. “The company is not proceeding with this transaction due to several factors, including the prevailing market conditions,” the Belgian-Brazilian AB InBev group said on Friday.

THE COMPANY IS NOT PROCEEDING WITH THIS TRANSACTION DUE TO SEVERAL FACTORS, INCLUDING PREVAILING MARKET CONDITIONS

“The company will closely monitor market conditions, as it continuously evaluates its options to enhance shareholder value, optimise the business and drive long-term growth, subject to strict financial discipline.”

The IPO would have been the biggest since Uber’s 2019 listing raised $8.1bn. But that could be exceeded easily as Chinese online retail titan Alibaba considers a Hong Kong listing.

The tech group reportedly hopes to raise an eye-watering $20bn, which would be the biggest public issue in Hong Kong since insurance firm AIA raised $20.5bn.

Alibaba raised $25bn when it listed in New York five years ago, making it the world’s biggest IPO.