Smithfield Foods Inc. (SFD) shares surged 5.25% in US trading on Tuesday, following the US pork producer's $522 million initial public offering (IPO) that returned it to the public markets after over a decade of private Chinese ownership.

The Virginia-based company re-listed on the Nasdaq after pricing its IPO at $20 per share, below the expected $23-$27 range, indicating lower than anticipated demand. Still, the offering allowed Smithfield's Chinese parent WH Group to reduce its stake from full ownership to around 90%.

While some US politicians have raised concerns about Chinese ownership of a major US food company, Smithfield executives argue that WH Group's investment has benefited its operations and allowed for expansion. The pork giant plans to use the IPO proceeds for plant improvements and automation as it seeks to grow its packaged foods business.