Midea’s Hong Kong IPO: The Biggest in Three Years Raises US$3.46 Billion, Signaling a Surge in Mega Deals Amidst Overwhelming Investor Demand

Midea's Hong Kong IPO is set at the maximum limit to accumulate US$3.46 billion, making it the largest in three years. The value of the listing is HK$54.80 due to high interest from both international and local investors, paving the way for 'more significant transactions'.

The start-up sale of shares (IPO) for China's appliance manufacturer, Midea, has been set at the highest expected price due to strong demand from investors. This significant transaction provides a crucial boost to Hong Kong’s fundraising market, which has seen lackluster performance for over three years.

The biggest global producer of domestic appliances is set to increase its funds by HK$26.97 billion (US$3.46 billion), following the establishment of the IPO price at its peak range of HK$52 to HK$54.80, as stated by the investment bankers associated with the underwriting. This will mark the largest new listing in the city in over three years.

The initial public offering attracted "significant interest from international investors", leading to it being "oversubscribed many times over", stated a finance professional intimately connected with the offering.

In the current unfavorable market conditions in Hong Kong, a flourishing large-scale IPO such as the Midea deal could enhance market confidence," stated Tom Chan Pak-lam, the lifetime honorary president of the Institute of Securities Dealers, an organization representing brokers. "This could potentially attract more substantial transactions in Hong Kong's markets in the future."

According to those participating in the underwriting process, the global portions of the sale, which represented 95% of the 492.14 million newly issued shares, received more subscriptions than available on the first day they were offered, which was Monday.