Henan-based WH Group began pre-marketing on Monday for a $4.8 billion to $6 billion initial public offering of shares that will rank as one of Asia’s largest in four years.
Early indications suggest that many long-only funds are extremely positive on the underlying story but considerably less keen on what they consider to be a punchy valuation.
Key to the final outcome will be how much pricing power they have over the Chinese company, which needs to get its IPO away to reduce the debt it took on board when it bought US-listed Smithfield Foods in 2013.
As a result of the acquisition,...
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