Shares in Chinese language digital equipment maker Midea surged greater than 9 p.c on its Hong Kong debut Tuesday, having raised round $4 billion within the metropolis’s greatest preliminary public providing for greater than three years.
The agency spiked at 60 Hong Kong {dollars} ($7.70) in early exchanges, up 9.5 p.c from its 54.80 Hong Kong greenback ($7.03) listing value, which was on the high quality indicated in its prospectus.
Midea’s bumper itemizing fuelled hopes that the Hong Kong bourse can appeal to extra high Chinese language corporations and regain its crown because the world’s high venue for IPOs.
The Chinese language finance hub has suffered a gentle decline in new choices since a regulatory crackdown by Beijing beginning in 2020 led some Chinese language mega-companies to place their plans on maintain.
The town noticed simply 30 IPOs within the first half of this yr, in contrast with greater than 100 yearly between 2013 and 2020.
Midea’s IPO has eclipsed the mixed valuation of all of Hong Kong’s new listings to date this yr, and is the town’s largest since JD Logistics and Kuaishou Know-how within the first half of 2021.
The Foshan-based firm final week expanded the variety of shares on supply by round 15 p.c to 566 million—an indicator of sturdy demand.
In a submitting to the Hong Kong inventory trade on Monday it mentioned the worldwide portion of the IPO was subscribed by greater than eight instances, earlier than making an allowance for the adjustment to the supply measurement.
Midea chairman Paul Fang known as the itemizing “a strategic step forward in the company’s globalisation”, the South China Morning Submit reported on Tuesday.
Cornerstone buyers, together with a subsidiary of Cosco Delivery Holdings and a part of UBS Asset Administration Singapore, agreed to purchase Midea shares value $1.26 billion.
Based in 1968, Midea has develop into one of many world’s largest sellers of residence home equipment corresponding to washing machines and air conditioners and it additionally owns the German industrial robotic maker Kuka.
It final month reported a 14 p.c rise in internet revenue within the first half of 2024 regardless of weakening shopper spending as a result of China’s financial slowdown, whereas income hit $52.7 billion.
The corporate’s shares in Hong Kong had been supplied at a 20 p.c low cost in comparison with its inventory value in Shenzhen, the place it has been listed since 2013.
Hong Kong’s inventory trade acquired a lift earlier this yr after Chinese language regulators unveiled measures to help the town’s standing as a finance hub.
The bourse operator can even change its coverage this month to maintain buying and selling by typhoons and heavy storms, in a bid to lift competitiveness.
