Chinese appliance maker Midea raises $4 bln in Hong Kong IPO

HONG KONG

Shares in Chinese electronic appliance maker Midea surged more than 9 percent on its Hong Kong debut on Tuesday, having raised around $4 billion in the city's biggest initial public offering for more than 3 years.

Midea's bumper listing fuelled hopes that the Hong Kong bourse can attract more top Chinese firms and regain its crown as the world's top venue for IPOs.

The Chinese finance hub has suffered a steady decline in new offerings since a regulatory crackdown by Beijing starting in 2020 led some Chinese mega-companies to put their plans on hold.

The city saw just 30 IPOs in the first half of this year, compared with more than 100 annually between 2013 and 2020.

Midea's IPO has eclipsed the combined valuation of all of Hong Kong's new listings so far this year, and is the city's largest since JD Logistics and Kuaishou Technology in the first half of 2021.

The Foshan-based company last week expanded the number of shares on offer by around 15 percent to 566 million, an indicator of strong demand.

In a filing to the Hong Kong stock exchange on Sept. 16, it said the international portion of the IPO was subscribed by more than 8 times.

Cornerstone investors agreed to buy Midea stocks worth $1.26 billion.

Founded in 1968, Midea has become one of the world's largest sellers of home appliances such as washing machines and air conditioners and it also owns the German industrial robot maker Kuka.

It last month reported a 14 percent rise in net profit in the first half of 2024 despite weakening consumer spending due to China's economic slowdown, while revenue hit US$52.7 billion.