CHINESE home appliance maker Midea Group on Monday (Sep 9) launched a share offering of about HK$26.97 billion (S$4.5 billion) in Hong Kong, according to its filings, in the city’s largest listing in more than three years.
The company, listed in Shenzhen, has allotted around 492.1 million shares for the Hong Kong offering, the filing showed, with the stock to be priced between HK$52 and HK$54.80 per share.
The listing, which Reuters reported last week, would be the biggest in Hong Kong since JD Logistics raised US$3.16 billion in May 2021. The deal eclipses Hong Kong’s most recent biggest deal, Chinese lithium battery maker CALB, which raised US$1.3 billion in October 2022.
Midea’s Shenzhen-listed shares closed on Friday at 63.02 yuan (69.32 Hong Kong dollars) each, which means the Hong Kong shares are being sold at a discount of up to 25 per cent.
Hong Kong shares typically trade at a discount compared to mainland stocks. Investors are usually offered stock at a cheaper price in offshore listings such as this as an incentive to buy into the share offering.
Cornerstone investors have subscribed for about US$1.25 billion worth of Midea shares, the company’s filing shows, led by Cosco Shipping Holdings and UBS Asset Management Singapore.
Midea’s shares would trade under the stock code 0300 on the Hong Kong Stock Exchange. Trading is expected to begin on Sep 17, the filing said.
Dealmakers hope a successful large deal by a well-known company such as Midea could revive Hong Kong’s listing prospects.
There has been about US$2.5 billion raised in Hong Kong initial public offerings so far in 2024, according to Dealogic data. That is far below the US$22.1 billion year-to-date record set in 2021. REUTERS
