Muyuan Eyes US$1 Billion Share Sale Amid Rising Net Income and Market Dynamics
Muyuan Foods Considering Significant Share Sale
Share sale efforts by Muyuan Foods, one of the largest pig breeders globally, indicate a potential secondary listing in Hong Kong anticipated to generate around US$1 billion. The company seeks to hire banks to facilitate this process, which may occur as soon as this year depending on ongoing deliberations.
Financial Performance and Market Context
Despite a 3 percent decline in shares this year, Muyuan has seen a recovery in net income, posting 10.5 billion yuan in Q3, rebounding from a loss the previous year. The Shenzhen Stock Exchange Composite Index has risen by approximately 6 percent, indicating some market resilience.
China's pork sector currently grapples with a significant surplus resulting from recovery from African swine fever. Weaker meat demand amidst economic uncertainties is expected to impact farmers' margins significantly this year.
Mainland Investment Trends
If Muyuan proceeds, it would join other mainland firms, such as Contemporary Amperex Technology and Foshan Haitian Flavouring & Food, in exploring listings in Hong Kong. Recently, mainland Chinese investors acquired a record HK$29.6 billion in Hong Kong stocks, showcasing robust confidence in undervalued tech stocks despite geopolitical concerns.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.