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Midea Group, China’s world-beating home appliances giant, to file for US$1 billion Hong Kong IPO next month, sources say
- Midea’s board approved the H-share listing on September 18, the 10th anniversary of its listing in Shenzhen; no details were given
- China International Capital Corp and Bank of America are joint sponsors, with company aiming to list within 18 months of approval from shareholders
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Midea Group, the world’s biggest home appliances maker, plans to submit its listing application in Hong Kong as early as next month in a jumbo initial public offering (IPO) by the entity controlled by China’s seventh richest billionaire, according to people familiar with the matter.
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The firm has appointed China International Capital Corp (CICC) and Bank of America as joint sponsors to prepare the so-called A1 form submission, the people said. Barring market hiccups, the stock could start trading early next year, according to the usual timeline for local IPOs, they added.
The IPO could raise more than US$1 billion subject to changes in market conditions, they said. Based on the current proposal, it could be one of the biggest in recent history. There has not been a billion-dollar IPO in Hong Kong since China Tourism Group Duty Free’s US$2.3 billion deal in August 2022.
CICC, Bank of America and Midea declined to comment when contacted by the Post.
The IPO plan could give the moribund local market a welcome boost and attract global investors back to the third-largest capital market in the region. The Hong Kong stock exchange’s ranking fell to ninth globally in the first half of this year, after IPO proceeds shrank to the lowest in two decades.
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