Smithfield Foods, Inc. (SFD.US) plans to issue 34.8 million shares The total market value of the company may reach 10.7 billion US dollars

Smithfield Foods (stock code SFD.US) launched its initial public offering (IPO) roadshow on Tuesday, planning to publicly issue 34,800,000 common shares with an expected price range of $23 to $27 per share. At the high end of the valuation, the company's total market value will reach $10.7 billion. The IPO includes 17,400,000 common shares issued by Smithfield Foods and 17,400,000 common shares sold by existing shareholders as mentioned in the company's registration statement. In addition, the underwriters will have a 30-day option to purchase up to an additional 5,220,000 common shares at the initial offering price (minus underwriting discounts and commissions) from the selling shareholders. It is important to note that Smithfield Foods will not receive any proceeds from the sale of shares by existing shareholders. Founded in 1936, Smithfield Foods is headquartered in Smithfield, Virginia and is one of the world's largest pork producers and processors. The company owns over 500 farms in the United States and has partnership agreements with 2,000 independent farms. In 2013, Chinese multinational corporation WH Group acquired Smithfield Foods for $4.72 billion. Currently, the company processes approximately 27 million hogs per year, producing over 6 billion pounds of pork. Its product line includes packaged meats, bacon, sausages, hot dogs, and deli meats, with brands such as Eckrich, Nathan's Famous, and Farmland. With 50,200 employees worldwide, the company generates annual revenue of $14 billion and has production facilities in Mexico, Poland, Romania, Germany, Slovakia, and the UK. In its recent filing with the Securities and Exchange Commission, Smithfield Foods stated that its packaged meat business is its core, with the profitability of value-added products more than doubling since 2014. Key competitors of Smithfield Foods include Tyson Foods, Inc. Class A (TSN.US), Hormel Foods Corporation (HRL.US), JBS USA (JBSAY.US), Pilgrim's Pride (PPC.US), Cargill, Conagra (CAG.US), and General Mills, Inc. (GIS.US). For the 12 months ending December 31, 2023, Smithfield Foods achieved sales of $14.6 billion. As of September 29, 2024, the company's net debt to adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio for the most recent 12 months was 1.4 times, and the debt to ongoing net income ratio was 4.5 times.