AB InBev is targeting a July listing for its Asia-Pacific operations that could raise at least USD5 billion. The brewer submitted an application to the Hong Kong stock exchange to sell shares in the unit, according to a filing posted to the bourse’s website. JPMorgan Chase and Morgan Stanley are leading the offering as joint sponsors, a preliminary prospectus shows. Bank of America and Deutsche Bank have also joined the deal as joint global coordinators. The initial public offering (IPO) indicates that the brewer seeks to profit from Asia’s rapidly growing demand for premium beer. “Our current expectation is to complete the process during the upcoming summer,” a representative for AB InBev said in an emailed response to Bloomberg, adding that the deal depends on valuation, market conditions and other factors.

The deal could be the biggest Hong Kong IPO from a company without mainland Chinese backing since 2010, when regional insurer AIA Group completed a USD20.4 billion share sale, according to Bloomberg. Listings of foreign companies in Hong Kong have been falling since 2011. AB InBev could seek a valuation of USD40 billion to USD70 billion for its Asia operations, people familiar with the matter have said. The unit had a net income of USD1.4 billion in 2018, up from USD1.1 billion a year earlier. The move would help AB InBev reduce its debt and pursue acquisition opportunities. The company has already cornered the premium beer market in China and has been buying up local craft beer brands to reach fashionable millennials with a taste for more expensive brews.

The competition for Asian consumers has been intensifying. Heineken this year set up a partnership with China Resources Beer (Holdings), having bought a USD3.1 billion stake in the country’s top beer maker. Heineken is challenging AB InBev’s position as the largest foreign brewer in the Chinese market, which has also attracted Carlsberg. The market is expected to expand by 21% to USD106 billion in just four years. China Resources Beer (Holdings), which sells “Snow” brand beer, is among five new constituent stocks that will join the Hang Seng China Enterprises Index from June 17. The new entrants will replace five existing stocks in the 50-company index, the South China Morning Post reports.