HK IPO: Muyuan Foodstuff Co., Ltd. Subscription Analysis
Muyuan Foods is a technology-driven pork industry leader and a pioneer in smart pig farming. Its business model covers the entire pig industry chain, including pig breeding, pig farming, feed production, and slaughtering. Since 2021, Muyuan has been the world's largest pig farming company by production capacity and slaughter volume, ranking first globally for four consecutive years. Its global market share in slaughter volume increased from 2.6% in 2021 to 5.6% in 2024, surpassing the combined market share of the second to fourth market participants by 2024.
The net proceeds from this global offering amount to HKD 10.46 billion, with 60% to be used for exploring overseas opportunities to expand the business footprint, about 30% for driving technological innovation across the industry chain through R&D investment, and about 10% for working capital and general corporate purposes.
IPO Information:
The global offering consists of 273.9514 million shares, with 100 shares per lot. The offer price is no higher than HKD 39.00, with an entry fee of HKD 3,939.34. The offering adopts Mechanism B, with 273,952 lots available for public subscription, evenly split between Group A and Group B (136,976 lots each). It is estimated that 40,000 to 60,000 investors will participate, with a 100% one-lot winning rate and ample supply.
Muyuan Foods reported revenue of RMB 124.826 billion in 2022, RMB 110.861 billion in 2023, and RMB 137.947 billion in 2024, with a compound annual growth rate of 5.12%. In Q3 2025, revenue reached RMB 111.79 billion, up 15.52% year-on-year from RMB 96.775 billion.
Gross profit was RMB 21.839 billion in 2022, RMB 3.446 billion in 2023, and RMB 26.28 billion in 2024. In Q3 2025, gross profit was RMB 20.935 billion, up 25.29% year-on-year from RMB 16.709 billion.
Net profit was RMB 14.933 billion in 2022, with a net loss of RMB 4.168 billion in 2023 and net profit of RMB 18.925 billion in 2024. In Q3 2025, net profit was RMB 15.112 billion, up 34.38% year-on-year from RMB 11.246 billion.
Muyuan was founded in 1995 and listed on the Shenzhen Stock Exchange in 2014 (stock code: 002714). After nearly 30 years of development, it has become the world's largest pig farming giant. This Hong Kong listing completes its international layout. As of the time of writing, the A-share closing price was RMB 46.00, while the H-share offer price is no higher than HKD 39.00, resulting in an H/A premium rate of -24.56%. Currently, leading consumer stocks listed on A/H markets, such as Haitian and Anjoy Foods, have H/A premium rates of -23.84% and -23.44%, respectively. For Muyuan, an H/A premium rate of -15% to -20% is reasonable given its market recognition.
This offering includes 16 cornerstone investors subscribing to USD 685 million (approximately HKD 5.352 billion), accounting for 50.10% of the offering, with a six-month lock-up period. The lineup of cornerstone investors is decent. The sponsors—Morgan Stanley, CITIC Securities, and Goldman Sachs—are top-tier. Seeing CITIC Securities used to feel like seeing the God of Wealth. The stabilizing agent, Morgan Stanley, is all about stability.
Muyuan is likely to see modest gains, but the timing isn't ideal, and there are a few drawbacks. First, the premium is limited, and all attention has been drawn to Han's Laser and Montage Technology. Second, the offering size is large, and the low per-lot value makes the cost-performance ratio less obvious. Additionally, the sector isn't in a favorable position right now. With limited funds, investors naturally gravitate toward sectors with bigger narratives and higher upside potential for new listings, leading to weak margin financing demand and Muyuan being the first to be dropped from the list.
If Muyuan were the only stock available, many investors would likely take a chance on it given this premium rate. But with a full feast of options waiting, who would settle for just a plate of pork knuckle rice? $MUYUAN(02714.HK)
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