WH Group IPO is now more of a piglet

WH Group has lowered the valuation for its planned Hong Kong IPO after pulling the initial high-profile $5 billion deal in April.

The Chinese pork producer is now seeking to raise up to $2.05 billion by selling 2.56 billion shares at a fixed price of HK$6.20 per unit, people familiar with the situation said on Tuesday.

This represents 18% of the enlarged share capital. A greenshoe option if exercised could boost the amount to $2.36 billion.

The fixed price puts the company’s forward pe at 11.5 times 2014 earnings, much more attractive than the 15 to 20.8 times 2014 earnings marketed...