Smithfield Foods dips after upsized $454 mln secondary offering priced

Smithfield Foods

05/09/2025 12:38

** Smithfield Foods' SFD.O shares down 1.1% at $23.98 premarket after secondary offering priced

    ** Virginia-based meatpacker late Thurs announced ~19.5 mln shares sold by subsidiary of WH Group 0288.HK at $23.25 for total deal size of $454.1 mln

    ** Offering price is 4.1% discount to stock's last close

    ** Before the bell Weds, SFD launched 16 mln share offering by its

      Hong Kong-listed parent and disclosed that WH's chairman, Wan Long, agreed to buy up to 1.8 mln shares

** With the sale, WH Group's holdings in SFD would go from ~92.7% to ~87.8%, per the SEC filing

** Morgan Stanley, BofA and Barclays are joint lead bookrunners for the offering

** SFD went public in Jan after IPO priced at $20

** Per latest LSEG data, 5 of 6 analysts rate SFD "buy" and the other rates "hold" and median PT is $30

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))