US Pork Giant Smithfield Foods Stock Finishes Lower in Trading Debut

Smithfield Foods (SFD) stock edged lower in its trading debut Tuesday after the U.S. pork giant priced shares below their marketed range.

On Monday, Smithfield and Chinese owner WH Group priced a total of nearly 26.1 million shares at $20 each in their initial public offering (IPO). The two had originally offered 34.8 million shares at $23 to $27 apiece. The shares opened on the Nasdaq Tuesday at $21.05, ending the day down 1.3% to $19.75.

The IPO marked a return to a U.S. listing for the Smithfield, Va.-based company, which went private when WH Group acquired it for nearly $5 billion in 2013. Its pricing, however, along with the cool response signals that the company overestimated demand for the IPO, which hit the market as bankers prepare for an expected boom in deals this year. 

WH Group Will Continue to Hold Majority of Smithfield

WH Group’s acquisition of Smithfield over a decade ago was then the biggest purchase by a Chinese firm of a U.S. one, according to Dealogic data. The Hong Kong-listed firm will continue to own about 90% of Smithfield. 

Smithfield’s IPO is the largest by a food firm in the US since Swedish milk company Oatly Group’s (OTLY) $1.6 billion listing in 2021, according to Dealogic.

Apart from pork production, Smithfield sells packaged meat under its own namesake brand as well as Eckrich, Nathan’s Famous, and Farmer John.   

This article has been updated since it was first published to include closing share price data and add background information.