Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>After reducing the IPO price, and the placement size, <strong><a href="https://www.smartkarma.com/entities/wh-group-ltd" target="_blank" data-smartkarma-citation="entities:13200:1" rel="noopener">WH Group (288 HK)</a></strong> has now completed the spin-off of <strong><a href="https://www.smartkarma.com/entities/smithfield-foods-inc" target="_blank" data-smartkarma-citation="entities:44251:1" rel="noopener">Smithfield Foods (SFD US)</a></strong>.</li>
<li>Preceding my comments on the WH Group are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


After reducing the IPO price, and the placement size, WH Group (288 HK) has now completed the spin-off of Smithfield Foods (SFD US).
Preceding my comments on the WH Group are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: WH Group (288 HK) IPOs Smithfield (SFD US). Now What?

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Smithfield Foods / Equity Capital Markets

<ul>
<li>The company  priced a downsized transaction of 26.08mm shares (down from 34.8mm) at $20.00 (original range $23-$27) and opened at $21.05 for a gain of 5.3% at first trade.</li>
<li>A broken IPO usually hurts the psyche of the IPO market in the short term.</li>
<li>The healthcare space will be looking to give IPOs a boost during the second half of the week with much stronger deals set to debut.</li>
</ul>


The company  priced a downsized transaction of 26.08mm shares (down from 34.8mm) at $20.00 (original range $23-$27) and opened at $21.05 for a gain of 5.3% at first trade.
A broken IPO usually hurts the psyche of the IPO market in the short term.
The healthcare space will be looking to give IPOs a boost during the second half of the week with much stronger deals set to debut.


Smithfield Foods Inc (SFD): IPO Opens with Heavy Selling Pressure, Closes Below Issue

<ul>
<li>Sources have stated that the deal is experiencing "pushback" from the buy-side on the price. </li>
<li>Fresh on the mind of IPO investors is the underperforming energy deal, Venture Global (VG)</li>
<li>Price sensitivity in the deal is a stark signal to exercise caution on this IPO at this time</li>
</ul>


Sources have stated that the deal is experiencing "pushback" from the buy-side on the price. 
Fresh on the mind of IPO investors is the underperforming energy deal, Venture Global (VG)
Price sensitivity in the deal is a stark signal to exercise caution on this IPO at this time


Smithfield Foods, Inc. (SFD): Price Sensitivity Emerges in Another IPO

<ul>
<li>The company is seeking a market cap of $9.1b-$10.7b based on the $23-$27 range. </li>
<li>A high end pricing for Smithfield values the company at roughly 13.5x this year's earnings, a sizable discount to comps Hormel Foods (about 21x) and Tyson Foods (26x).</li>
<li>It is our opinion that the business model is well-rounded, resilient and stable with multiple-organic growth levers.</li>
</ul>


The company is seeking a market cap of $9.1b-$10.7b based on the $23-$27 range. 
A high end pricing for Smithfield values the company at roughly 13.5x this year's earnings, a sizable discount to comps Hormel Foods (about 21x) and Tyson Foods (26x).
It is our opinion that the business model is well-rounded, resilient and stable with multiple-organic growth levers.


Smithfield Foods (SFD): IPO Provides a Compelling Discount to Industry Peers

<ul>
<li>Spin-Off of WH Group's could raise up to $939 million if priced at the high-end of the range</li>
<li>The IPO is set to price on Monday January 27th for a Tuesday, January 28th debut</li>
<li>Flash numbers revealed sales for the three months ended December 29, 2024 will range from $3,873 million to $3,953 million (prev. year $3,998 million)</li>
</ul>


Spin-Off of WH Group's could raise up to $939 million if priced at the high-end of the range
The IPO is set to price on Monday January 27th for a Tuesday, January 28th debut
Flash numbers revealed sales for the three months ended December 29, 2024 will range from $3,873 million to $3,953 million (prev. year $3,998 million)


Smithfield Foods (SFD): Terms Set for WH Group's Spin-Off

United States

Smithfield Foods, Inc. is an American food company with a leading position in packaged meats and fresh pork products. With a diverse brand portfolio and strong relationships with U.S. farmers and customers, the company responsibly meets demand for quality protein around the world.

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Smithfield Foods (SFD US)

StubWorld: WH Group (288 HK) IPOs Smithfield (SFD US). Now What?

For a cross border holdco, with a material, somewhat difficult to short, PRC-listed sub; in tandem with a second material sub, with an exchange...

David Blennerhassett

Smithfield Foods Inc (SFD): IPO Opens with Heavy Selling Pressure, Closes Below Issue

Company prices downsized IPO at $20/share, opens at $21.05 for 5.3% gain. Broken IPOs impact market psyche short term. Healthcare sector to boost...

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Smithfield Foods, Inc. (SFD): Price Sensitivity Emerges in Another IPO

Investors are exercising caution as buy-side pushes back on price which could signal potential trouble for upcoming IPO Smithfield Foods.

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Smithfield Foods (SFD): IPO Provides a Compelling Discount to Industry Peers

Company seeking market cap of $9.1b-$10.7b with $23-$27 range, high end pricing values at 13.5x earnings, strong and stable business model with...

IPO Boutique

Smithfield Foods (SFD): Terms Set for WH Group's Spin-Off

WH Group's spin-off IPO could raise $939 million, set to debut on January 28th, set terms for its upcoming IPO on Tuesday morning.

IPO Boutique

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

StubWorld: WH Group (288 HK) IPOs Smithfield (SFD US). Now What?

For a cross border holdco, with a material, somewhat difficult to short, PRC-listed sub; in tandem with a second material sub, with an exchange...

David Blennerhassett

Smithfield Foods Inc (SFD): IPO Opens with Heavy Selling Pressure, Closes Below Issue

​Company prices downsized IPO at $20/share, opens at $21.05 for 5.3% gain. Broken IPOs impact market psyche short term. Healthcare sector to boost...

IPO Boutique

Smithfield Foods, Inc. (SFD): Price Sensitivity Emerges in Another IPO

​Investors are exercising caution as buy-side pushes back on price which could signal potential trouble for upcoming IPO Smithfield Foods.

IPO Boutique

Smithfield Foods (SFD): IPO Provides a Compelling Discount to Industry Peers

​Company seeking market cap of $9.1b-$10.7b with $23-$27 range, high end pricing values at 13.5x earnings, strong and stable business model with...

IPO Boutique

Smithfield Foods (SFD): Terms Set for WH Group's Spin-Off

​WH Group's spin-off IPO could raise $939 million, set to debut on January 28th, set terms for its upcoming IPO on Tuesday morning.

IPO Boutique

Company prices downsized IPO at $20/share, opens at $21.05 for 5.3% gain. Broken IPOs impact market psyche short term. Healthcare sector to boost...

Investors are exercising caution as buy-side pushes back on price which could signal potential trouble for upcoming IPO Smithfield Foods.

Company seeking market cap of $9.1b-$10.7b with $23-$27 range, high end pricing values at 13.5x earnings, strong and stable business model with...

WH Group's spin-off IPO could raise $939 million, set to debut on January 28th, set terms for its upcoming IPO on Tuesday morning.