Midea Group’s Highly Anticipated‍ IPO: Raising Up to 26.97 Billion Yuan

Midea Group, a mainland home appliance giant, has begun its initial public offering⁣ (IPO) today, with plans ⁢to issue 490 million H shares. The offering price ranges from 52 yuan to 54.8 yuan, raising ⁢a maximum of 26.97 ​billion yuan.

• The IPO will be held from September 9 ⁢to 12, with 5% of the shares sold to the ‍public in Hong Kong.
• The entry fee per lot is 5535.3 yuan, with each lot containing 100 shares.
• Midea Group is expected ⁤to be ‌listed on September 17, with⁣ CICC and Bank of America Securities as joint sponsors.

The company’s IPO is the second largest in terms of funds raised,⁢ after JD Logistics, ​which was listed in May 2021. As of 3:30 pm ‍on Monday, Midea Group’s first-day ⁤margin amount was 133 million yuan, equivalent to ⁤9.9% of the public offering.

Business Overview

Midea Group​ derives most of its revenue from ‍the sales of home appliances in the smart home business. It is the world’s largest home appliance company‌ in terms of ‍sales and revenue in ‌2023, with a market share of 7.9%. The company’s home ‍appliance ‍compressor ‌business ⁤ranks first in the global market, with a market share of 30.3%.

Financial Performance

Midea ⁤Group’s revenue last year was 373.71 billion yuan, a year-on-year increase of⁢ 8.1%. Gross⁢ profit increased by ⁢18% to 98.39 billion yuan, and ⁣gross profit margin increased by 2.2 ⁤percentage​ points to 26.3%. Profit attributable to ⁢the company’s owners ​was 33.72 billion yuan, an increase of 14.1%.

Cornerstone Investors

The group has introduced⁤ a total of 18 cornerstone⁤ investors, including COSCO Shipping Holdings, UBS AM Singapore, BYD, China Securities Regulatory Commission Phase II, and China Post Financial Management. If the mid-point price is ⁣53.4 ⁤yuan, ⁤the total⁣ subscription amount will be US$1.26 billion.

Usage of Net Proceeds Raised

About 20% of the net proceeds raised will be used for global R&D investment, 35% for continued investment in⁣ intelligent manufacturing systems ⁢and supply chain management upgrades, 35% for improving ​global distribution channels and sales networks, and increasing overseas sales of ⁢own⁢ brands; 10% for working capital and general corporate purposes.

Yingli Securities Offers Interest-Free Margin‍ Subscription

Yingli Securities has announced that uSMART customers who ‍subscribe‍ to Midea Group on margin can enjoy interest-free if ‌the subscription amount ⁣is ‌500,000 yuan or less; ​if the amount is more ‌than 500,000 yuan, the interest will be‌ 5.88%.