Smithfield Foods Inc. has announced the launch of a secondary public offering of 16 million shares of common stock.
The offering comes just nine months after Smithfield returned to the public markets in January, when the company listed shares on the Nasdaq exchange while its parent company, China’s WH Group, retained majority ownership. WH Group originally took Smithfield private following its acquisition in 2013.
This latest offering is being made by SFDS UK Holdings Limited, Smithfield’s principal shareholder, and not by Smithfield itself. As a result, the company will not receive any proceeds from the sale.
Underwriters will also have a 30-day option to purchase up to an additional 2.4 million shares as part of the transaction.
The offering will be made solely through a prospectus, according to company officials.
