Chinese state-owned food conglomerate Cofco Group launched the Hong Kong initial public offering of its meat processing business on Monday. To the surprise of many, the deal was structured with all primary shares, implying all the private-equity backers will remain committed to the business, rather than seek to cash out of it.
The 975.6 million-share deal for Cofco Meat is being pitched at HK$2 to HK$2.65 per share, potentially raising HK$2.6 billion $333 million if pricing comes at the top end and at least $251 million at bottom.
The base deal is equivalent to 25% of the firm’s enlarged share capital,...
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