Midea launches $5.2b IPO in Hong Kong's biggest since 2021
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The news: Chinese home appliance maker Midea Group is raising up to HK$26.97 billion ($5.18 billion) through an IPO in Hong Kong, according to media reports citing a company filing.
The numbers: Midea is offering 492.1 million shares at HK$52 to HK$54.80, representing a 25% discount to its Shenzhen-listed stock at Friday's closing.
Order books were covered on Monday, according to a Bloomberg report. Trading is expected to start on 17 September.
Cornerstone investors include Cosco Shipping and UBS, who will buy about USD1.26 billion worth of shares equivalent to a third of the company, the news agency said.
Midea’s revenue grew by 10.3% in the first half of 2024, with profits up 14%.
The context: It is the city’s largest IPO in over three years, coming at a time when Hong Kong’s IPO market has struggled with a steep decline in deals since 2021.
Proceeds from the raising will be used for R&D, upgrading systems, and expanding distribution.
The source: Bloomberg
