Smithfield parent WH Group has postponed its already reduced initial public offering on the Hong Kong Stock Exchange citing deteriorating market conditions that are creating weak demand.
The WH Group said that in light of the trouble with the market conditions and recent excessive market volatility, the company, upon consulting joint sponsors, decided that the global offering will not proceed at this time.
The company had announced last week it would reduce the size of the IPO from its initial $5.3 billion to $1.9 billion.
WH Group, which last year was known as Shuanghui International, bought Smithfield for $4.7 billion in cash, plus debt assumption. As many as 29 investment banks were working on the deal, which critics said created confusing messages about the offer.