Smithfield Foods Raises $522M in IPO Amid Soft Pricing

Smithfield Foods Inc., the world’s largest pork producer, raised $522 million in its initial public offering, pricing its shares below the marketed range. The Virginia-based company, a subsidiary of Hong Kong-listed WH Group Ltd., sold approximately 26 million shares at $20 each, falling short of the expected range of $23 to $27 per share.

The IPO reflects a cautious rebound in the U.S. IPO market, with first-time share sales reaching $43 billion last year, a 64% increase over 2023 but still below pre-pandemic levels. WH Group, which acquired Smithfield for $4.7 billion in 2013, will retain control of the company following the listing.

Smithfield, known for its prominent brands like Eckrich, Nathan’s Famous, and its namesake products, reported net income of $581 million on $10.2 billion in revenue for the first nine months of 2024. This marks a significant improvement from a $2 million net loss on $10.6 billion in revenue during the same period the previous year. The company has streamlined its operations ahead of the IPO, divesting European businesses and hog farming assets.

Despite its progress, Smithfield faces ongoing challenges. It has settled $194 million in antitrust lawsuits and remains under scrutiny for similar claims. Additionally, labour-intensive industries like meat processing could be impacted by potential changes in U.S. immigration policy under the Trump administration, which the company has flagged as a potential operational risk.

The IPO was managed by Morgan Stanley, Bank of America Corp., and Goldman Sachs Group Inc. Smithfield plans to list its shares on the Nasdaq Global Select Market under the ticker symbol SFD, underscoring its aspirations for growth and resilience in a competitive market.