Shuanghui taps six banks for Hong Kong IPO

IPO could be Asia’s largest stock offering in four years.

Shuanghui International Holdings recently bought Smithfield Foods, Inc, the largest US pork producer. It aims to raise up to US$6 billion from the IPO scheduled for the second quarter of 2014.

An IPO would allow Shuanghui to pay down debt that it borrowed for the US$4.7 billion Smithfield purchase and provide an exit for investors such as CDH, one of China's biggest private equity firms which has long wanted to sell its stake in the company.

One source said the IPO could go as high as US$6 billion while another said it was more likely to be in the US$3 billion to US$4 billion range.

Analysts said the IPO will be a milestone in Shuanghui's transformation from a Chinese company to an international food company.

The deal is expected be a major boost for the Hong Kong Stock Exchange, which has seen public offering volumes drop over the last two years.

Shuanghui has tapped BOC International, CITIC Securities International, Goldman Sachs, Morgan Stanley, Standard Chartered and UBS to lead the IPO.