Pork processor WH Group to seek at least $4.3b through HK IPO

China's WH Group Ltd, the world's largest pork processor, is seeking to raise at least $4.3 billion through the issuing of new shares in its upcoming Hong Kong IPO, people familiar with the matter said.

The size of the deal could grow to as much as $6 billion if WH Group's current owners including private equity firm CDH Group and others decide to sell their shares, the people said on Wednesday, declining to be identified because details of the offering have not been publicly disclosed.

At $6 billion, the IPO would be the Asia-Pacific region's biggest since insurer AIA Group Ltd raised $20.5 billion in 2010. The sale, the proceeds of which will be used to pay down debt that WH Group took to acquire Smithfield Foods Ltd last year, is set to be launched on Thursday.

WH Group plans to sell 2.923 billion new shares in an indicative range of HK$8 ($1.03) to HK$11.25 per share, valuing the primary portion of the IPO at up to HK$32.9 billion, the people said.

The IPO would be the second-biggest ever by a food company, behind Kraft Food Inc's $8.7 billion listing in June 2001.

BOC International, Citic Securities International, DBS, Goldman Sachs, Morgan Stanley, Standard Chartered and UBS were hired as sponsors of the IPO.