Key Takeaways:
Muyuan Foods has filed for a Hong Kong IPO, planning to use the proceeds to build a 3.2 billion yuan pig farm in Vietnam, its first outside China
The hog farming company has also found new growth with recent moves into the slaughtering and meat processing businesses
When husband and wife Qin Yinglin and Qian Ying set up their first pig farm in Neixiang, a small town in Central China's Henan province, in 1995, they could hardly have imagined their tiny operation of 200 breeding sows and 2,000 piglets would one day become a company with 1,000 pig farms across China and 5.4% of the global hog farming market.
In the first nine months of this year, that company, Muyuan Foods Co. Ltd. (002714.SZ) sold 57.3 million hogs and 11.5 million piglets. Its integrated pork processing and feed industry complex in Neixiang alone can process up to 2.1 million hogs per year, in 21 individual six-story buildings, each with an annual production capacity of 100,000 hogs.
Muyuan is no stranger to the capital markets, having listed shares on the domestic-focused Shenzhen Stock Exchange in 2014. Now, the company is eyeing a second listing in more internationally focused Hong Kong that could raise up to $1 billion, backed by underwriting heavyweights Morgan Stanley, CITIC Securities and Goldman Sachs. The company plans to use the proceeds to develop its first complex outside China, in partnership with BAF Vietnam Agriculture, and to expand its China operation as well.
Muyuan's Hong Kong filing last week marked its second application this year, after an earlier one in May lapsed. The company is racing to make a listing that would be one of the largest by a consumer company in Hong Kong's hottest IPO market in years. Its ...
