Midea Group Launches IPO in Hong Kong, Aims to Raise $3.5 Billion

September 9 – Midea Group, a leading home appliance maker, has begun its initial public offering (IPO) in Hong Kong, seeking to raise up to $3.5 billion. This will be the largest listing in Hong Kong in over three years.

The company, headquartered in Foshan, Guangdong, is offering 492.1 million shares in Hong Kong at a price range of HK$52 to HK$54.80 per share, according to listing documents dated Monday. The low end of the range represents a 25% discount to the company’s Shenzhen A-share price last Friday.

Midea Group expects to determine the issue price on September 13 and list the company on September 17. Cornerstone investors have agreed to subscribe for $1.26 billion of Midea shares, accounting for more than one-third of the total issuance. Investors include COSCO Shipping Hong Kong and UBS Asset Management Singapore.

The listing of Midea Group will be a welcome boost to the Hong Kong stock market. In terms of target fundraising scale, Midea Group will be the largest listing in Hong Kong since JD Logistics raised $3.6 billion in May 2021. This will also be the largest Chinese listing since CNOOC issued $5 billion in A shares in April 2022.

News source: Gelonghui