BRIEF: Midea launches IPO that could become Hong Kong’s biggest this year

Home appliance maker Midea Group Co. Ltd. (0300.HK; 000333.SZ) launched its Hong Kong IPO on Monday, a deal that could become the city’s largest this year. The company set a price range of HK$52 to HK$54.80 for each of its H-shares, with an admission fee of HK$5,535 per lot. A total of 492 million shares are being sold, including 24.6 million for the local Hong Kong portion of the offering.

The company set a subscription deadline of Sept. 12. The stock is set to price on Sept. 13 and make its trading debut three days later. The company could raise up to HK$27 billion ($3.46 billion) if the shares price at the top of their range.

Midea reported revenue of 145.8 billion yuan ($20.6 billion) in the first four months of this year, up 11%, year-on-year, while its profit rose 12% to 13.46 billion yuan. Proceeds from the IPO will be mainly used to upgrade the company’s intelligent manufacturing system and supply chain management, as well as improve its global distribution channels and sales network.

By Lau Chi Hang

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