Editor’s note: The article has been updated with comments from Smithfield.

The U.S.-based subsidiary of Hong Kong’s WH Group Ltd. ( WHGRF ) , Smithfield Foods Inc., is reportedly gearing up for a U.S. initial public offering (IPO). The company has chosen Bank of America Corp. ( BAC ) and Goldman Sachs Group Inc. ( GS ) as advisers.

What Happened: Smithfield Foods aims to raise a minimum of $1 billion through the IPO, which could take place as soon as this year. However, the final decision is yet to be made, and the company may decide against the listing, according to sources, Bloomberg reported on Friday.

This development follows a significant intraday gain of 3.8% in WH Group’s shares in Hong Kong on Friday, marking its largest increase since May 6. The company’s shares have seen a 27% rise over the past year.

WH Group ( WHGRF ), with a market value of $8.2 billion, reported a revenue of approximately $26 billion in 2023. The group acquired Smithfield in 2013, and the combined firm went public in Hong Kong in 2014 after raising more than $2 billion.

Smithfield Foods declined to comment on the plans.

See Also: Elon Musk Laughs At Jim Cramer Saying He’d Rather Buy GM Over Tesla, With EV Giant’s Stock Rallying 44% Since: ‘Amazing’

Why It Matters: Earlier this year, WH Group ( WHGRF ) posted impressive financial results, with a 73% rise in its profit during the first quarter, despite a decrease in its first-quarter revenue by 8.3% year-over-year.

The development also comes when concerns have been raised about China’s growing influence on U.S. farmland and food security, making Smithfield’s IPO a focal point for discussions on foreign ownership of American agricultural assets.

Additionally, the recent exclusion of Joey Chestnut from Nathan’s Hot Dog Eating Contes has sparked conversations about the patriotism and origin of food products, further highlighting the significance of Smithfield’s upcoming IPO.

Read Next:

Cathie Wood Says Nvidia Performance Exceptional But Forecasts ‘Short-Term Indigestion’ For Company’s Business As Customers Reassess AI Strategies

Image by Wirestock Creators via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari