World’s biggest brewer AB InBev suspended what would have been the biggest IPO of the year!

Based in Belgium and founded in 2008, Anheuser Busch InBev is a multinational company, which was formed after mergers between Anheuser Busch in the USA and InBev in Belgium. They produce the well-known and signature beer, Budweiser, which is the best-selling beer in the USA.

AB InBev was hoping to raise about $9.8 billion when it listed its Asia business in Hong Kong to go public but then it decided to cancel their plans for an IPO.

As the parent company of Budweiser, if it went public after listing Budweiser Brewing Company APAC on the Hong Kong Stock Exchange, the IPO would have surpassed Uber, which raised $8.1 Billion in New York.

The reason behind suspending the IPO is the low market demand. AB InBev stated that “due to “prevailing market conditions”, they had to make such a decision.

“We will closely monitor market conditions as we continuously evaluate our options to enhance shareholder value, optimise our business and drive long-term growth, subject to strict financial discipline,” company spokesman Pablo Jimenez said.

ABI is undoubtedly the dominating market leader in China with 46.6% of market share in the premium and super premium price points. In 2018, China was the world’s largest beer consumer by volume.


As of today, the share price of Anheuser-Busch InBev (NYSE: BUD) is 86.94 USD and analysts are saying to go long for the next 12 months which has a median target of $98.50, whereas the high estimate and low estimate are $105.55 and $87.00 respectively.

(Reference: CNN Business, Financial Times, The Straits Times, Markets Insider, Bloomberg)
(Image source: Reuters)