Smithfield Foods is seeking to raise as much as $940m in a public share offering, according to the US pork processor’s IPO filing.
In the document registered with the US Securities and Exchange Commission (SEC), Smithfield Foods said it would offer a total of 34.8 million shares priced in a range of $23 to $27 as it seeks a listing on the New York Stock Exchange. That equates to as much as $939.6m.
Go deeper with GlobalData
The company plans to offer 17.4 million shares of common stock, while an additional 17.4 million shares will be offered by SFDS UK Holdings, an indirect wholly owned subsidiary of Smithfield’s parent, China’s WH Group.
In November, WH Group confirmed the spin-off of Smithfield Foods with a 20% share listing.
Founded in 1936, Smithfield was listed on the New York Stock Exchange from 1999 until 2013, when it was acquired by WH Group for $4.7bn.
Following the acquisition, Smithfield became a wholly owned subsidiary and was taken private.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSmithfield has been restructuring its business to enhance efficiency.
In August, the company spun off its European operations into a standalone business, aiming “to focus local management teams on the different market dynamics of North America and Europe”.
In December, Smithfield transferred a portion of its hog farming operations to a new venture led by Murphy Family Ventures.
Additionally, recent filings revealed that Smithfield sold its hog production assets in Utah and several farms in Missouri.
Smithfield Foods said in the IPO document that it will not receive proceeds from the stock sold by the selling shareholder.
The net proceeds that will be allocated to the US-based pork producer are intended to be used for general corporate purposes, including investments in infrastructure, automation, and capacity expansion, the filing added.
Following the offering, WH Group is expected to maintain approximately 91.2% ownership of Smithfield’s voting shares, or 89.9% if underwriters exercise their option to purchase additional shares.
Consequently, Smithfield Foods will qualify as a “controlled company” under Nasdaq’s corporate governance standards.
However, WH Group itself is not classified as a controlled company due to its diversified shareholder structure, the company statement said.
Smithfield produces packaged meats and fresh pork, marketing its products under a diverse portfolio of brands, including Smithfield, Eckrich, and Nathan’s Famous, among others.
Historically, the company produced roughly half of the pigs it processes. However, it has been gradually reducing its internal hog production, shifting toward sourcing more pigs from external partners.
Smithfield has decreased its internal hog production from a peak of 17.6 million pigs in 2019 to 14.6 million by the end of 2024.
The company plans to further scale down production, aiming to conclude 2025 with approximately 11.5 million pigs.
Smithfield posted net income of $581m from continuing operations for the nine months ended 29 September, compared to a net loss of $2m during the same period a year earlier.
The company recorded sales of $10.2bn, down from $10.6bn in the previous year.
