Sept 9 (Askume) – Chinese home appliance maker Midea Group (000333.SZ) sold about HK$26.97 billion ($3.46 billion) of stock in Hong Kong on Monday, the city’s biggest stock offering in more than three years, according to a filing showing scale listings.
Documents show the company, which is listed in Shenzhen, has allocated about 492.1 million shares for the Hong Kong issuance, with shares priced at HK$52 to HK$54.80 per share.
Askume reported last week that the listing would be JD Logistics’ biggest in Hong Kong since it raised US$3.16 billion in May 2021. (3931.HK) , which raised US$1.3 billion and will reach US$1 billion in October 2022.
Midea’s Shenzhen-listed shares closed at 63.02 yuan (HK$69.32) per share on Friday, representing a discount of up to 25% to Hong Kong shares.
Hong Kong shares often trade at a discount compared to mainland shares. In such offshore listings, investors often get shares at a cheaper price, giving them an incentive to buy the shares.
Company filings show that Cornerstone Investors have subscribed for Midea shares worth about $1.25 billion, with COSCO Shipping Holdings (601919.SS) and Singapore’s UBS Asset Management leading the round.
Midea’s shares will be traded on the Hong Kong Stock Exchange under the stock code 0300. Trading is expected to begin on Sept. 17, the filing said.
Dealmakers hope that successful mega-deals from well-known companies such as Midea could revive Hong Kong’s listing prospects.
According to Dealogic, Hong Kong initial public offerings (IPOs) have raised about $2.5 billion so far in 2024. This is well below the year-to-date record of $22.1 billion in 2021.
(1 USD = 7.7945 HKD)
(1 Hong Kong dollar = 0.9092 yuan)
(This story has been corrected to read “UBS Asset Management Singapore” in paragraph 6, not “UBS Asset Management Shipping”)
