Chinese appliance giant Midea Group is poised to raise US$4 billion ($5.20 billion) in its Hong Kong listing in an enlarged deal that will be priced at the top of the marketed range, people familiar with the matter said, in a show of demand for the city’s biggest share sale in three years.
The Foshan, China-based company plans to sell shares at HK$54.80 ($9.13) apiece, the people said, asking not to be identified because the discussions are private. The listing is scheduled to take place in Hong Kong on Tuesday. Midea is set to sell 566 million shares after exercising an option to boost the size of the offering due to strong demand, the people said.
Talks are still ongoing and no final decisions have been made, the people said.
A representative for Midea declined to comment.
Midea had planned to offer 492.1 million shares at HK$52 to HK$54.80 a piece, according to its listing document dated Monday. Midea had guided investors toward the top end of the range, people familiar with the matter have said.
Order books are multiple times oversubscribed and closed a day earlier than planned, the people said.
See also: Hillhouse, GIC said to be in talks to invest in Midea’s Hong Kong IPO
Alternative asset manager Hillhouse Investment and Singaporean sovereign wealth funds GIC and Temasek Holdings had been considering investing in Midea’s listing, Bloomberg News has reported.
At US$4 billion, Midea’s listing is set to be Hong Kong’s biggest debut since Kuaishou Technology’s US$6.2 billion listing in early 2021. Midea, at the top end of the price range, would be offering a roughly 20% valuation discount to its shares in Shenzhen before the deal launched.
