Hong Kong IPO Market on a High; HKEX CEO Anticipates More Mega Deals Following Midea’s $3.98 Billion Listing

HKEX CEO predicts a prosperous future for Hong Kong's IPO market

Following Midea's $3.98 billion listing on Tuesday, Bonnie Chan observes promising indicators in the IPO market.

The surge in Hong Kong's initial public offering (IPO) market is expected to maintain its pace, with further significant deals predicted in the future, says exchange operator head, Bonnie Chan Yiting.

The biggest global manufacturer of domestic appliances has accumulated HK$31.01 billion (US$3.98 billion), marking the most significant initial public offering in the city for over three years. Given the substantial interest from investors, Midea might utilize an over-allotment option, which could increase the transaction size to US$4.6 billion, positioning it as the second-largest capital raising activity globally this year.

Further substantial agreements may materialize in Hong Kong, as top Chinese businesses are continually spurred on by mainland Chinese officials to register in the city, according to Chan. "Today's emblematic IPO of Midea Group is a prime illustration of this," she mentioned.

The Initial Public Offering (IPO) has catapulted Hong Kong into the top five global listing locations, based on the volume of funds raised, as per Chan. The city had previously slipped to 13th place in these rankings during the first half of the year, a disappointing fall from its position as the leading IPO hub in seven out of the last 15 years.