China’s largest pig breeder, Muyuan Foods, is preparing a Hong Kong share sale that could raise USD 1.4 billion, making it the city’s biggest offering so far this year. The Shenzhen-listed company will issue 274 million shares at a maximum price of HKD 39 (~USD 5) each. Pricing is expected on February 5, with trading scheduled to begin the following day.
Strong cornerstone support
The deal has attracted significant backing from cornerstone investors. Thailand’s Charoen Pokphand Foods and Singapore’s Wilmar International are among the largest participants. Fidelity International and UBS Asset Management have also committed, bringing total cornerstone investment to about USD 685 million.
Together, these investors will secure nearly half of the offering, underscoring confidence in Muyuan’s growth strategy.
Funding innovation and expansion
Muyuan intends to use proceeds to strengthen research and development in breeding, smart farming, nutrition management, and biosecurity. The company also plans global expansion and general corporate investment.
These initiatives reflect its ambition to modernize operations and diversify beyond China’s domestic market, where demand has slowed.
Revenue for the first nine months of 2025 rose 15.5% to around USD 16.11 billion. Preliminary net income for the year was reported at USD 2.18-2.26 billion. However, the company has warned that full-year profit may decline between 12.2% and 17.8% due to falling pig prices, which have squeezed margins across the industry.
Hong Kong market momentum
Muyuan’s listing comes as Hong Kong enjoys renewed strength in its equity capital markets. The city raised USD 4.2 billion from listings in early 2026, its strongest start since 2021. More than 350 companies are currently awaiting approval, highlighting investor appetite despite China’s sluggish consumer demand.
Other consumer-focused firms have also tapped Hong Kong recently. Eastroc Beverage is preparing to debut, while snack retailer Busy Ming Group saw a strong first-day performance. These deals, alongside Muyuan’s offering, signal growing confidence in the city’s role as a hub for capital raising.
Muyuan traces its roots to a hog farm established in 1995. Today, it is valued at more than $35 billion in Shenzhen trading, reflecting its position as one of the world’s largest pork producers. The Hong Kong listing, backed by global investors, marks a new chapter in its expansion strategy.