US Pork Giant Smithfield Foods Stock Slips in Trading Debut
KEY TAKEAWAYS
Smithfield Foods (
SFD
) stock fell in its trading debut Tuesday after the U.S. pork giant priced shares
below
their marketed range.
On Monday, Smithfield and Chinese owner WH Group priced a total of nearly 26.1 million shares at $20 each in their
initial public offering (IPO)
. The two had
originally offered
34.8 million shares at $23 to $27 apiece.
Shares opened on the
Nasdaq
Tuesday at $21.05 but recently were down 1.3% to $19.75.
The IPO marks a return to a U.S. listing for the Smithfield, Va.-based company, which went private when WH Group acquired it for nearly $5 billion in 2013. Its pricing, however, signals that the company had overestimated demand for the IPO, which is hitting the market as bankers prepare for an expected
boom in deals
this year.
WH Group Will Continue to Hold Majority of Smithfield
WH Group’s acquisition of Smithfield over a decade ago was then the biggest purchase by a Chinese firm of a U.S. one, according to Dealogic data. The Hong Kong-listed firm will continue to own about 90% of Smithfield.
Apart from pork production, Smithfield sells packaged meat under its own namesake brand as well as Eckrich, Nathan’s Famous, and Farmer John.
UPDATE—This article has been updated with the latest share price information.
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