Smithfield Foods, one of the largest pork processors in the U.S., successfully priced its initial public offering (IPO) below its forecasted range, raising $521.7 million for the company and its selling stockholder. The IPO valued the pork producer at $7.95 billion, marking a return to a U.S. exchange after an 11-year hiatus.
The offering was priced at $20 per share, below the $23-$27 range that would have raised up to $939.6 million. Smithfield raised $260.9 million through the IPO, with the remaining proceeds going to its parent company, WH Group, which remains a majority shareholder.
Coming off the heels of Venture Global’s failed mega-IPO last week, Smithfield’s debut could set precedents for other companies considering a listing in the coming months. The company employs approximately 2,500 people in Mexico and has cited tariffs as a risk factor in its IPO prospectus. However, its long-standing history and profitability have made it an attractive option for investors, who have increasingly leaned on tried-and-tested companies over riskier startups over the past two years.
Smithfield’s shares will begin trading on the Nasdaq under the symbol “SFD” on Tuesday. Founded in 1936, the company was listed in New York from 1999 until 2013 when WH Group acquired it for $4.7 billion. Morgan Stanley, BofA Securities, and Goldman Sachs are the lead underwriters for the offering.
The IPO’s timing and performance offer insights into how investors are weighing risks like tariffs while valuing established firms. With its strong financial standing and market presence, Smithfield positions itself as a compelling candidate for new investors looking to capitalize on U.S. equities.
Source: https://finance.yahoo.com/news/smithfield-foods-prices-ipo-below-053207026.html