As China's economic growth declines, some analysts say Beijing may have to spend more on infrastructure, adding to concerns about high debts.China Economyread more
U.S. President Donald Trump said Tuesday that Washington and Beijing have a long way to go on trade, adding that America could place tariffs on an additional $325 billion...Asia Marketsread more
"The charts, as interpreted by Carley Garner, suggest that the upside in the stock market has gotten more limited," Jim Cramer says.Mad Money with Jim Cramerread more
John Paul Stevens, who served on the Supreme Court for nearly 35 years and became its leading liberal, has died.Politicsread more
The largest U.S. banks are scrutinizing members of the Federal Reserve for any insight into how the central bank will tinker interest rates.Banksread more
The U.S. and China restarted their trade talks, but signs are showing a comprehensive deal could be a long way off, if it happens at all.Marketsread more
The WTO ruling recognized that the United States had proved that China used state-owned enterprises to subsidize and distort its economy. But the U.S. must accept Chinese...World Economyread more
Facebook's cryptocurrency project has already been met with skepticism from policymakers around the world.Technologyread more
Stone, 66, a notorious Republican political operative who has described himself as a "dirty trickster," had previously been dressed down by the judge for his public remarks...Politicsread more
Delta is gathering more data from customers than ever in hopes of avoiding customer service problems and increasing customer satisfaction, its CFO says.At Workread more
The Biden team's second-quarter Federal Election Commission filing shows that the campaign wrote a check of just over $5,300 on June 28 to Sheehan Associates for "strategic...2020 Electionsread more
* IPO price range set at HK$40-HK$47 per share
* Book closes on July 11, will debut in Hong Kong on July 19
* IPO to give company market value of up to $63.7 billion BREAKINGVIEWS-Budweiser serves up a pricey pint (Adds share price move, context)
HONG KONG, July 2 (Reuters) - Brewing giant Anheuser-Busch InBev NV (AB InBev) is seeking to raise up to $9.8 billion by listing its Asia-Pacific business in Hong Kong, marking what would be the world's largest initial public offering this year.
Budweiser Brewing Company APAC, whose portfolio of more than 50 beer brands includes Stella Artois and Corona, is selling 1.6 billion primary shares at between HK$40-$47 ($5.13-$6.02) apiece, according to termsheets seen by Reuters.
The deal will raise between $8.3 billion and $9.8 billion for heavily-indebted AB InBev before any over-allocation option is included, giving Budweiser Asia a market capitalisation of up to $63.7 billion after the IPO.
The world's largest brewer has been working to reduce a debt pile of over $100 billion following the purchase of rival SABMiller in late 2016.
The company has said the main merit of a Hong Kong listing would be to create a champion in the Asia-Pacific region, where sales are still growing and increasingly wealthy consumers are trading up to higher margin premium beers.
"In addition to paying down debt, the deal provides AB InBev with a 'platform for M&A' whereby local brewers such as ThaiBev might prefer to tie up with a locally focused player in an Asian currency," said Nico von Stackelberg of Liberum.
Shares in Belgium-based AB InBev traded 1.4% higher at 79.36 euros by 0925 GMT.
Even at the low end of the price range, the IPO will be the biggest globally this year, outstripping the $8.1 billion raised in New York by Uber, data from Refinitiv shows.
Global share listings hit their lowest level in three years in the first half of the year, with a slowdown in Europe counteracting a stronger U.S. showing.
The IPO pricing values Budweiser Asia at 16-18 times its enterprise value (EV) to EBITDA (earnings before interest, tax, depreciation and amortisation) ratio, one termsheet shows.
EV-EBITDA is a common valuation metric that seeks to help investors compare companies' operations and strip out the different effects of financing costs.
Budweiser Asia's ratio compares with an EV-EBITDA value of 11 for AB InBev itself, according to Refinitiv data, 15 for China-focused Tsingtao and 10 for Japan's Kirin , another Asia-centric brewing giant.
The deal will be a welcome boost to Hong Kong, which is lagging behind the New York Stock Exchange and Nasdaq in terms of IPOs this year, with $8.9 billion to its credit compared with $14.9 billion and $17.5 billion raised by its U.S. rivals.
The biggest listing in the Asian financial hub so far in 2019 has been that of Chinese securities firm Shenwan Hongyuan HK Ltd which raised $1.2 billion in April.
The investor response to the offering will also act as a barometer for other large share sales in the near future, with Alibaba Group Holding Ltd considering raising as much as $20 billion through a listing in Hong Kong.
Budweiser Asia's deal is expected to price in New York on July 11 and the stock will debut in Hong Kong on July 19, the term sheet showed.
A spokeswoman for AB InBev declined to comment.
JPMorgan and Morgan Stanley are the joint sponsors of the float.
Bank of America Merrill Lynch and Deutsche Bank are the joint global coordinators for the offering. ($1 = 7.8015 Hong Kong dollars) (Reporting by Sumeet Chatterjee, Alun John and Julie Zhu; Editing by Himani Sarkar and Keith Weir)