Chinese pork producer, WH Group Ltd., is set to relaunch the company in Hong Kong's IPO and sell 2.56 billion shares for $0.80 each on Wednesday, Bloomberg reported.

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From its expected sales of $2.05 billion worth of shares, WH Group Ltd. will have the option of selling more shares depending on the demand of the people, potentially giving them an estimated total of $2.36 billion.

WH Group Ltd. hired two banks to advise them on raising an estimated amount of $2.05 billion in a Hong Kong public offering. The amount is 11 times larger than the company's estimated earnings for 2014.

Over the last two years, many companies have hired dozens of banks or financial advisors to sell their Initial Public Offering (IPO) or stock market launch, but their efforts fail due to underperformance of the IPO.

WH Group Ltd. initially proposed for its IPO in April, but it struggled because of very high valuations amounting to $5.3 billion. It prompted the company to relaunch with a lower valuation price.

WH Group bought a U.S. based company, Smithfield Foods Inc., in 2013, and part of the sales of the shares in the IPO will be used in funding debts incurred during the $7.1 billion company purchase.

Reports claim that a company hiring more banks for advice during an IPO causes the company to flounder during its stock market launch, according to the Wall Street Journal.

Reorient CEO Brett McGonegal said that in pricing an IPO, consistent information is very important, and more financial advisers will make things more complicated.

He added that the more people are put in the equation, the more confusing it becomes because of differences in the information they provide.

TagsLaunch, stock news, stock market, relaunch, public offerings