[Alpha Biz= Reporter Kim Sangjin] According to a Bloomberg report on September 9, Midea Group, China's largest home appliance manufacturer, is seeking to raise up to $3.5 billion (approximately 4.69 trillion won) in an initial public offering (IPO) on the Hong Kong Stock Exchange. This IPO is expected to be the largest on the Hong Kong exchange in the past three years.
The company plans to offer 492 million shares at a price range of HK$52 to HK$54.80 per share. The lower end of this range represents a 25% discount compared to the closing price of the Shenzhen Stock Exchange on the previous trading day, September 6. Midea Group intends to set the final price on September 13 and list its shares on September 17, marking its return to the public markets nearly 11 years after its initial listing on the Shenzhen Stock Exchange in 2013.
Bloomberg predicts that Midea Group's IPO will inject new vitality into the Hong Kong IPO market. The Hong Kong stock market raised over $50 billion through IPOs in 2020, but has only managed to raise $2.5 billion so far this year. Since the $1 billion IPO of battery supplier CALB Group in 2022, there has been no IPO of similar scale. Midea Group’s IPO is expected to be the largest on the Hong Kong exchange since JD Logistics raised $3.6 billion in May 2021.
On a broader scale, this IPO is significant for China. According to Bloomberg, it will be the largest IPO in China since China National Offshore Oil Corporation raised $5 billion in April 2022.
알파경제 Kim SangJin (letyou@alphabiz.co.kr)
