The Midea Group, a prominent home appliance manufacturer, is planning a potential initial public offering (IPO) in Hong Kong, according to information released on Thursday. The firm, established by billionaire He Xiangjian in Guangdong province in 1968, has engaged China International Capital Corp (CICC) and Bank of America to assist with the A1 form submission, a key step in the IPO process.
This proposed IPO could potentially raise over US$1 billion, making it one of the most significant IPOs in recent times. The previous billion-dollar IPO in Hong Kong was when China Tourism Group Duty Free raised US$2.3 billion in August 2022.
The Midea Group's family wealth is valued at US$22.9 billion according to Forbes, and the company is the largest by market value and annual revenue, as per Bloomberg data. Its product line comprises home appliances as well as heating, ventilation, and air-conditioning systems.
If market conditions remain favorable, Midea's stock could begin trading early next year. This timeline aligns with the usual schedule for local IPOs in Hong Kong.
The decision by Midea Group to pursue a dual listing in Hong Kong is expected to stimulate the city's languishing IPO market. It is perceived that top-tier mainland companies continue to regard Hong Kong as an ideal platform for raising funds from international investors.
Midea's IPO is likely to be well received by investors due to its dominant position in mainland China's market and strong financial performance. Approval of the IPO by Chinese regulators would also signify Beijing's endorsement of Hong Kong as an international financial hub.
Representatives from CICC, Bank of America, and Midea Group have not commented on this matter.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.