What to Know About the Pork IPO That Could Kick Off 2025 With a Bang | Global News Avenue

Smithfield food may be one of the largest United States in the United States Public issuance for the first timeAs pork manufacturers plan to raise up to $ 940 million, because it returns to the stock market

Established in 1936, the company headquartered in Smithfield, Virginia, was previously listed in the United States, and then privately in 2013. At that time, China ’s WH Group purchased it with $ 4.87. According to DEALOGIC data, the acquisition at that time was the largest acquisition of Chinese companies on American companies. The following year was made public in Hong Kong. According to regulatory documents, after the US IPO, the WH Group will still have about 90 % of Smithfield.

Be a banker to prepare a Prosperity in transactionsAs the Fed continues to reduce interest rates, President Donald Trump expects to reduce regulations. Nevertheless, it is expected that Trump’s presidential position will also bring risks to pork producers owned by China.

Investors need to learn five things from Smithfield’s IPO files.

1. This may be the largest food IPO in the United States over the years

The price range of Smithfield and 17.4 million shares per share was US $ 23 to 27, with a valuation of up to $ 10.7 billion.

A total of 34.8 million shares will raise $ 940 million at the top of the company’s proposed price range. Since Swedish milk company Oatly Group’s food company, this will make the IPO the largest IPO in the United States (train) According to DEALOGIC data, the listing of 1.6 billion US dollars listed in 2021 is also the country’s largest nation’s listing.

2. Smithfield is the largest pork producer in the United States

According to the IPO file, the company is the largest pork producer in the United States. As of the fall of 2023, the company’s market share is 23 %. According to Circana, this is also the second largest meat provider of American packaging meat. In the US $ 45 billion US packaging meat market, the market share is 20 %.

In addition to the characters of the same name, the meat brands they packaged include Eckrich, famous and farmer John, famous and farmers. Smithfield said that demand will grow with “consumers connect protein with health and energy”.

It quotes the organization for economic cooperation and development of data, indicating that pork accounts for 24 % of all meat protein consumed in the United States in 2023. Market research company Mintel reports that 86 % of consumers expect to eat the same amount of pork or More based on a survey conducted in February 2024, in the next year.

3. This is a favorable Tip, although the sales have fallen

Smithfield reported that the net revenue was US $ 581 million and revenue was $ 10.2 billion as of nine months as of the nine months of September 29. The net loss in the same period last year was $ 2 million and revenue was $ 10.6 billion.

As of the three months of December 29, 2024, Smithfield’s estimated sales were between 3.87 billion and US $ 3.95 billion, which was lower than nearly $ 4 billion in the same period last year, partly because Mexico’s sales were relatively low.

4. Higher tariffs, immigration curbs between political risk factors

President Donald Trump’s policy, including New tariff This may trigger revenge punishment and promise Deportation The company said in regulatory documents that unauthorized immigrants may cause losses to Smithfield.

Exports account for 13 % of the total sales of Smithfield to September. The company has 34,000 employees in the United States and has about 2,500 employees in Mexico.

It says: “If new immigration legislation is formulated, such laws may include the provisions that may increase our recruitment, training and retain employee costs, increase our compliance with federal law to review employees’ immigration status and create a shortage of employees. Cost. “We submitted it.

There is also the problem of ownership of Smithfield. Smithfield said in a submitted document: “The continuous or increased tension relationship between the political or trade relations between the United States and the Chinese people may cause the negative emotions of the company controlled by shareholders to control the company.”

5. Finally, stock symbol-company fund plan

Pork producer has applied for a list Nasdaq Under the stock “SFD”.

Smithfield said it hopes to use the income share in the IPO to “capital protection investment, including short -term and intermediate period investment, interest investment, investment -level securities, government securities and monetary market funds.”