RT: Midea appliances with names in the background
Kim Kyung-hun | Reuters
Chinese electronics manufacturer Midea Group On Monday, the company sold about HK$26.97 billion ($3.46 billion) of stock in Hong Kong, the city’s largest listing in more than three years, according to its filings.
Documents show that the company, which is listed in Shenzhen, has allotted about 492.1 million shares for Hong Kong issuance, with the shares priced at HK$52 to HK$54.80 per share.
Reuters reported last week that the listing would be the largest listing in Hong Kong since JD Logistics raised $3.16 billion in May 2021. AVIC Lithium Battery, which raised US$1.3 billion in October 2022.
Midea’s Shenzhen-listed shares closed at 63.02 yuan (HK$69.32) per share on Friday, which represents a discount of up to 25% for Hong Kong shares.
Hong Kong stocks often trade at a discount compared to mainland stocks. In such offshore listings, investors often receive shares at a cheaper price, giving them an incentive to buy shares.
Cornerstone investors have subscribed for about $1.25 billion worth of Midea shares, the company’s filings show, led by COSCO Shipping Holdings and UBS Asset Management Singapore.
Midea’s shares will be traded on the Hong Kong Stock Exchange under the stock code 0300. Trading is expected to begin on September 17, the filing said.
Dealmakers hope successful mega-deals by well-known companies like Midea can revive Hong Kong’s listing prospects.
Hong Kong initial public offerings have raised about $2.5 billion so far in 2024, according to Dealogic. That’s well below the year-to-date record set in 2021 of $22.1 billion.
