Ivey Publishing
WH Group: A Failed IPO in Hong Kong
Product Number:
9B17N002
Publication Date:
02/21/2017
Revised Date:
02/21/2017
Length:
15 pages (6 pages of text)
Product Type:
Case (Pub Mat)
Source:
Ivey/NUS
In July 2014, WH Group faced the issue of attempting to launch an initial public offering for the second time, after having previously failed to list its shares on the Hong Kong Stock Exchange. WH Group originated from a merger between two meat-processing companies: China’s Shuanghui International—a global leader in animal protein and the world’s largest pork producer—and Smithfield Foods from the United States. Both Shuanghui and Smithfield Foods commanded top market shares of pork consumption in their respective countries; Shuanghui controlled 2 per cent in China and Smithfield Foods captured 26 per cent in the United States. With many challenges ahead, WH Group had some decisions to make about the company’s future. Should the company try again to launch an initial public offering? Or should the company remain private?
Learning Objective:
This case is suitable for graduate or advanced undergraduate programs in corporate finance, as well as courses on the preparation and launch of an initial public offering (IPO), especially in regard to a subsequent launch after an earlier attempt has failed. After completion of the case, students should be able to do the following:
  • Discuss the prospects and issues related to raising funds via a second IPO attempt, after the first IPO attempt has failed
  • Evaluate potential reasons why an IPO attempt might fail
  • Understand the basics of the IPO process, including the decision, timing, and pricing of an IPO
  • Analyze various available options after a failed IPO attempt
Issues:
Disciplines:
International,  Finance
Industries:
Accommodation & Food Services
Setting:
Hong Kong, Large, 2014
Intended Audience:
Undergraduate/MBA
Price:
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download
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