Mainland pork leader MUYUAN is going public, raising nearly 10.7 billion with an entry fee of 3,939 yuan

Mainland pork leading enterprise MUYUAN (2714) will start its IPO today (29th) until next Wednesday (3rd), planning to issue 274 million H shares, with 10% for public offering in Hong Kong. The maximum offer price is HKD 39, aiming to raise approximately HKD 10.69 billion. Each lot consists of 100 shares, with an entry fee of HKD 3,939.34. It will officially list on February 6th, with Morgan Stanley, CITIC Securities, and Goldman Sachs as joint sponsors. H Shares Discounted 23% Compared to A Shares MUYUAN is already listed in mainland China, with its A shares (002714) closing at RMB 45.14 yesterday, equivalent to approximately HKD 50.64, meaning MUYUAN's H shares are discounted by at least 23% compared to A shares. The stock has introduced Charoen Pokphand Foods, Fengyi, Sinochem Hong Kong, Hong Kong YN International, Fidelity, J.P. Morgan Asset Management (Asia), Perseverance Asset Management, Shanghai Gao Yi, and Huatai Capital Investment Co., Ltd. (related to Gao Yi's OTC swaps), Ping An Life Insurance, Taikang Life, UBS AM Singapore, Midea Development Holdings BVI, Millennium, and Jane Street as cornerstone investors, with a total subscription amount of USD 685 million. The World's Largest Pig Farming Enterprise The prospectus states that MUYUAN adopts a vertically integrated business model covering the entire industry chain of live pig breeding, pig farming, feed production, and slaughtering meat. According to Frost & Sullivan statistics, since 2021, based on live pig production capacity and output, the group is the world's largest pig farming enterprise, with live pig output ranking first globally for four consecutive years. The global market share based on live pig output has grown from 2.6% in 2021 to 5.6% in 2024, surpassing the combined market share of the second to fourth market participants in 2024. Additionally, the group began entering the pig slaughtering and meat business in 2019, ranking fifth globally and first in China in 2024 based on the number of pigs slaughtered; based on revenue, the compound annual growth rate of the slaughtering and meat business from 2021 to 2024 is the highest among large peers in China. Profit Increased by 34% in the Last Nine Months In terms of performance, for the nine months ending last September, revenue recorded RMB 111.79 billion, an annual increase of 16%; during the period, profit was RMB 15.112 billion, an annual increase of 34%. The prospectus also mentions that the group continues to maintain a stable cash flow, with net cash inflow from operating activities recorded at RMB 37.543 billion and RMB 28.58 billion for the nine months ending September 30, 2024, and 2025, respectively; from 2022 to 2024, the cumulative net cash inflow from operating activities has already covered 1.6 times the cumulative capital expenditures (referring to cash payments for the purchase and construction of fixed assets, intangible assets, and other long-term assets). In 2024 alone, the net cash inflow from operating activities is three times the capital expenditures As for the net proceeds from this fundraising, approximately 60% will be used to explore overseas opportunities and expand the business footprint; about 30% will be used to promote technological innovation across the entire industry chain through research and development investment; and about 10% will be used for working capital and general corporate purposes. Related article: China’s private medical institution Zhuozheng Medical IPO, entry fee of HKD 3,363, introduces 4 cornerstone investors