Budweiser APAC Eyes $70B Valuation In IPO

In a move that brings it closer to an initial public offering (IPO), Anheuser-Busch InBev Group’s Asian business filed an application for a Hong Kong stock exchange listing.

The Budweiser Brewing Company APAC Ltd. unit makes, imports and sells more than 50 brands of beer ranging from Budweiser to Corona, The Wall Street Journal reported.

The company, which is looking to make a listing by July, is seeking a $70 billion valuation, per an unnamed source. Funds from an IPO could aid the unit in cutting down on debt and enabling it to make Asian acquisitions. Last year, the company’s Asia the prior year. It also reported revenues of $8.46 billion in 2018, which marked an increase from $7.79 billion in 2017.

Morgan Stanley and JPMorgan are joint sponsors of the offering, per the filing. The paper noted that sponsors help companies move through a listing and engage in due diligence, among other tasks, in Hong Kong. It also reported that the firm expects growth to be backed by rising beer consumption in Asia. Principal markets for the company encompass China, South Korea and Vietnam, among others.

In other recent news in the beverage space, Anheuser-Busch InBev SA and Keurig Dr Pepper Inc. are looking to tap into new areas for growth via a K-Cup machine for cocktails. The Drinkworks machine was reportedly coming to Missouri, Florida and California following a test in St. Louis. The machine makes drinks, such as a Moscow Mule or an Old Fashioned, by adding carbonation along with water. The machine does chill the beverages, but doesn’t add ice. The pods, which are tantamount to a shot of alcohol along with flavorings, reportedly retail for $15.99 for most cocktails.


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