(July 15): Thai Beverage PCL’s crown as top performer in Singapore this year is under siege after rival Anheuser-Busch InBev NV shelved the initial public offering of its Asian unit to raise up to US$9.8 billion ($13.3 billion).

That’s according to analysts at Tellimer Research and KGI Securities (Singapore) Pte, who said that the stock will take a hit on “sentiment” as Budweiser Brewing Company APAC Ltd’s IPO had been expected to boost the valuation of ThaiBev as bankers guided the former’s multiples at a premium to the Bangkok-based brewer. Shares of ThaiBev tanked as much as 4.1% on Monday.

Even with the slump, ThaiBev is still the top performer on Singapore’s benchmark Straits Times Index this year. The stock had gained 42% or US$4.7 billion in market value as of Friday’s close. Of the 19 analysts tracking the stock as compiled by Bloomberg, none have a sell rating on the company.

Budweiser Brewing was valued at 28.5 to 33.5 times consensus 2020 earnings at the offered price range, according to terms of the deal obtained by Bloomberg in early July. That compares with 19.6 times earnings estimates for the current year for the maker of Chang beer and SangSom rum, according to data compiled by Bloomberg.

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ThaiBev shares dropped Monday because the expectation was that Budweiser APAC’s IPO would lift valuations for the company, Nirgunan Tiruchelvam, head of consumer equity at research firm Tellimer Research, said by phone from Dubai.

The scrapped IPO of Budweiser will dent sentiment, but ThaiBev’s focus on deleveraging and the improving business outlook in Vietnam will support the stock at lower levels, said Tiruchelvam, who has a buy rating and the highest price target on the stock at $1.10.

The brewer controlled by billionaire Charoen Sirivadhanabhakdi earned the title of the world’s “cheapest alcohol name” at Goldman Sachs Group Inc in September last year after becoming the worst performer in its consumer stocks coverage.

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