February 12, 2026

 

Shares of Muyuan open flat in Hong Kong, China debut

 

 

Shares of China's biggest pig breeder Muyuan Foods opened flat in its Hong Kong, China debut on February 6, reflecting a cooling in the city's red-hot initial public offering (IPO) market as retail investors turn more cautious.

 

The world's largest hog firm's shares first changed hands at the offer price of HK$39 (US$5) and gained 3.9% to HK$40.52 (US$5.18) at the close, as the firm's long-term growth prospects gained footing.

 

Muyuan raised HK$10.7 billion (US$1.4 billion) after pricing the shares at the top of the marketed range, which marked a discount of more than 25% versus its Shenzhen-traded shares based on February 5's close. Hong Kong shares, or H shares, typically trade at a discount compared with their counterparts in mainland China (A shares) to attract investors.

 

"Given the AH price gap, it's very unlikely to trade near A-share levels," said Dickie Wong, executive director of research at uSmart Securities.

 

The discount "gives decent downside protection and attracts some AH arbitrage and institutional interest", while retail investors showed light commitment, he added.

 

The retail portion of the offering was oversubscribed by around five times, while the institutional tranche was oversubscribed about nine times, according to the company's late filing on February 5. That contrasted with retail oversubscription levels in the thousands seen in other blockbuster deals.

 

Muyuan's performance followed the modest debut of another billion-dollar deal, Eastroc Beverage, last week, highlighting a cooling in Hong Kong's IPO sentiment as the market undergoes a period of correction.

 

"Fundamentally, Muyuan is still the clear industry leader, but pork prices were weak and profit is expected to drop; near-term earnings are under some pressure," Wong said.

 

The firm reported that its January hog sales dropped 11.9 per cent year on year to ¥10.6 billion (US$1.5 billion) as the average market price declined – which was a major risk to its operating performance, it said in a filing.

 

Most of Muyuan's fundraising proceeds would be used for its global expansion and diversification in markets like Vietnam and Thailand, while the rest would be used for research and development, working capital, and general corporate purposes, according to its prospectus.

 

"The listing on the Hong Kong stock exchange marks a new chapter in Muyuan's journey towards internationalisation," said Qin Yinglin, chairman of Muyuan. "We will make full use of the global platform, remain committed to innovation, strengthen our core business, and contribute to transforming the pork industry into a modern, advanced sector – making pig farming easier and pork tastier."

 

Its share sale attracted more than a dozen cornerstone investors, including Thai conglomerate Charoen Pokphand Group, agribusiness group Wilmar, Fidelity International, UBS Asset Management, Millennium Capital and Jane Street.

 

- South China Morning Post