The IPO Buzz: U.S. Pork Producer Smithfield Foods (SFD Proposed) Files Plans for Big IPO

Iconic U.S. pork producer Smithfield Foods (SFD Proposed) filed its S-1 for its IPO early today – Monday,  Jan. 6, 2025 – in what could be the new year’s first major IPO. Although estimated IPO proceeds are $100 million, a placeholder figure, this IPO has the potential to raise at least two to three times that amount. Morgan Stanley, BofA Securities, Goldman Sachs, Barclays, Citigroup and UBS Investment Bank are the joint book-runners. Smithfield Foods is profitable: Net income was $450 million on revenue of $14.2 billion for the 12 months that ended Sept. 29, 2024, according to the prospectus. The company has about $2 billion in long-term debt, according to financial statements in the prospectus. The company says it intends to use the net IPO proceeds for general corporate purposed, including capital investments in infrastructure, automation and capacity expansion. WH Group acquired Smithfield Foods for $4.7 billion in 2013, which became one of the largest takeovers of an American business by a Chinese company at the time, according to Meat + Poultry, an industry publication. Smithfield was eventually delisted from the New York Stock Exchange. Over time, the company raised more than $2.3 billion and went public in the Hong Kong market in 2014, according to Meat + Poultry. (For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on the IPOScoop.com  website.) Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board. To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message. Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions. Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.