New stock news | Muyuan Food (02714) oversubscribed at 1.7 times with a subscription amount of 1.84 billion Hong Kong dollars. The entrance fee for one lot is 3,939.3 Hong Kong dollars.

Muyuan Foods (02714) will start its public offering from January 29th to February 3rd. Muyuan Foods plans to issue 270 million H shares, with 10% offered to the public in Hong Kong at a maximum price of HK$39, raising up to HK$10.68 billion. As of the evening of February 2nd, Muyuan has received total subscriptions of HK$1.84 billion, oversubscribed by 0.7 times based on the public fundraising amount of HK$1.068 billion. Each board lot of Muyuan Foods consists of 100 shares with an entry fee of HK$3,939.3. Muyuan Foods is expected to be listed for trading on February 6th. Morgan Stanley, Citic Securities, and Goldman Sachs are the joint sponsors. According to the prospectus, Muyuan Foods is a leader in the swine breeding industry with a vertically integrated business model covering the entire swine industry chain from breeding, farming, feed production, to meat processing. Based on Frost & Sullivan data, the company is the world's largest swine farming enterprise in terms of capacity and output since 2021, with the highest swine output for four consecutive years. The company's global market share, based on swine output, has increased from 2.6% in 2021 to 5.6% in 2024, surpassing the combined market share of the second to fourth participants by 2024. While solidifying its leading position in swine farming, Muyuan Foods has entered the meat processing business since 2019 to enhance its advantage in operating the entire industry chain. According to Frost & Sullivan, the company ranks fifth globally and first in China in meat processing based on processing volume in 2024. In terms of revenue, the company's meat processing business has the highest compound annual growth rate among large Chinese industry peers from 2021 to 2024. The company has signed cornerstone investment agreements with Charoen Pokphand Foods, Fengyi, China National Chemical Corporation, Hong Kong Yunnong International, Fidelity, Jardine Fleming Global Asset Management (Asia) Limited, Perseverance Asset Management, Shanghai Gaoyi, and Huatai Capital Investment (related to Gaoyi OTC derivatives), Ping An Life Insurance, Great People Life Insurance, UBS AM Singapore, Midea Development Holdings BVI, Millennium, and Jane Street. Cornerstone investors have agreed to subscribe for approximately HK$5.342 billion worth of shares at the offering price, subject to certain conditions (adjusted to the nearest whole trading unit of H shares of 100 shares per lot).