AB InBev wants to raise $5 billion in Hong Kong IPO. That’s half of its original goal

Anheuser-Busch InBev’s big Asia IPO has lost some of its fizz.

The world’s biggest brewer said Tuesday that it hopes to raise as much as $4.8 billion when it lists its Asia business in Hong Kong. That’s roughly half of the $9.8 billion AB InBev was hoping to raise when it first proposed a public offering. It scrapped those plans in July, citing market conditions. An IPO of that size would have been the largest of the year.

Budweiser Brewing Company APAC, the largest brewer in Asia by retail sales, plans to offer 1.26 billion shares for between 27 and 30 Hong Kong dollars ($3.45 to $3.83).

That would raise between 34 billion to 37.9 billion Hong Kong dollars ($4.4 billion to $4.8 billion) for the brewer of Bud Light, Beck’s and Stella Artois.

The listing excludes Budweiser APAC’s Australia operations, which the parent company said in July it would unload for $11.3 billion.

AB InBev said Tuesday that the funds raised by the offering will be used “immediately to repay loans” that are due to its subsidiaries.

The company has a massive debt load, and it’s already made some moves to steady its balance sheet, including a decision to cut its dividend in half last year and sell off the Australian business.

The company became the world’s largest brewer by borrowing money to fund a series of acquisitions. Its most recent mega purchase, of SABMiller, increased the company’s debt to $102.5 billion in 2018.

An Asia IPO could also help the company in China, the world’s largest market for beer. AB InBev’s sales in the country grew 8.3% last year, with brands like Budweiser and Corona performing especially well.

This report will be updated.