- On Friday, Anheuser-Busch InBev withdrew its plan to raise almost $US10 billion through a public offering of its Asia business unit.
- Morgan Stanley and JPMorgan would have divvied up between $US140 million and $US170 million in fees if the IPO went through, according to a new report from Bloomberg on Monday.
- The proceeds of the global brewer’s Asia unit IPO could’ve surpassed the $US8.1 billion raised by Uber in May.
- Watch AB InBev trade live.
Two of Wall Street’s biggest banks will reportedly lose out on the opportunity to reap up to $US170 million in fees from an IPO that could’ve topped the $US8.1 billion raised by Uber in May.
Anheuser-Busch InBev announced last Friday that it would no longer pursue a public offering of Asia business on the Hong Kong stock exchange. Morgan Stanley and JPMorgan were expected to earn between $US140 million and $US170 million for advising the company on the transaction, according to a new report from Bloomberg.
Shares of AB InBev rose as much as 1.25% on Monday morning.
Advisers to Budweiser Brewing Company APAC, AB InBev’s Asia unit, were set to evenly split 2% of the total funds raised in the listing, according to Bloomberg’s report which cited people familiar with the matter. The lead arrangers would be paid out about 70% of the fees with additional incentive payments, according to the report.
The company said in a statement it wasn’t following through with the listing partially because of “prevailing market conditions.” Asia has become an increasingly important market for Budweiser as consumer demand for high-end beers has kept sales growing.
The IPO’s failure will also weigh on Morgan Stanley’s reputation in the region. Since 2017, Morgan Stanley has been rated the number one bank for equity offerings in Asia, according to Bloomberg.
The offering was expected to raise between $US8.3 and $US9.8 billion and would have valued the company at around $US64 billion. The proceeds would have helped the alleviate its $US100 billion debt burden from its acquisition of SAB Miller in 2016.
Shares of AB InBev are up more than 35% year-to-date.
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