Smithfield Foods targets US$10.7B valuation in IPO

USA – Smithfield Foods, the largest pork producer in the United States, has announced plans for an initial public offering (IPO) that could value the company at approximately US$10.7 billion. 

Owned by China-based WH Group, Smithfield aims to sell 34.8 million shares priced between US$23 and US$27 per share, potentially raising up to US$939.6 million.

The IPO would leave the company with 397.5 million outstanding shares, reaching a total market capitalization of US$10.7 billion at the higher end of the price range. 

The company’s shares are set to be listed on the Nasdaq Global Select Market under the ticker symbol “SFD.”

According to Smithfield’s filing, half of the shares in the IPO—17.4 million—will be sold by the company itself, while the remaining half will be offered by its parent firm, WH Group. 

After the offering, WH Group will retain ownership of roughly 91% of Smithfield’s shares.

Smithfield first revealed plans to go public earlier this month, initially withholding details about the share price range and number of shares to be offered. 

This move comes as WH Group works to separate Smithfield’s U.S. and Mexico operations, a decision first disclosed in November 2024, amid declining pork profit margins.

The pork producer, known for brands such as Farmland bacon and Nathan’s Famous hot dogs, has also adjusted its operations in recent months. 

The company sold off some of its farm assets to long-term hog suppliers as part of a strategy to concentrate on processing and prepared food products.

Smithfield has been under WH Group’s ownership since 2013, when it was acquired in a landmark deal. 

The IPO marks a significant step in the company’s restructuring process and follows a period of financial pressure in the pork industry.

The timing of the IPO, as well as how the raised capital will be utilized, has yet to be disclosed.

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