Midea Group’s US$3.46 Billion Jumbo IPO Ignites Investor Interest

Midea Group’s Record-Breaking IPO

The initial public offering (IPO) of Midea Group, the world’s largest home appliance manufacturer, has been priced at the top of its expected range, raising a total of US$3.46 billion. This significant fundraising event underscores an intense interest from global investors amid a sluggish IPO market in Hong Kong.

Investor Demand Surges

The IPO is reported to be oversubscribed multiple times, showcasing strong investor confidence. Tom Chan Pak-lam, honorary president of the Institute of Securities Dealers, noted that a successful IPO like Midea's could rejuvenate market sentiment. This offering surpasses previous deals, including Baidu’s

Key Statistics of the Offering

• Pricing: HK$52 to HK$54.80 per share
• Total Shares: 492.14 million
• Local Oversubscription: 2.3 times based on HK$4.38 billion margin loans
• Cornerstone Investors: Includes Cosco Shipping Holdings and UBS Asset Management

Market Implications

The successful IPO comes at a crucial time for Hong Kong, which has seen declining deal sizes and frequencies recently. It ranks only 13th as a global IPO venue during the first half of the year. Midea, founded by He Xiangjian, with a fortune estimated at US$22.9 billion, is tapping into the global demand for innovative home appliances.