AFP – Shares in Chinese electronic appliance maker Midea surged more than nine per cent during its Hong Kong debut yesterday, having raised around USD4 billion in the city’s biggest initial public offering (IPO) for more than three years.
The firm spiked at HKD60 in early exchanges, up 9.5 per cent from its HKD54.80 list price, which was at the top of the range indicated in its prospectus.
Midea’s bumper listing fuelled hopes that the Hong Kong bourse can attract more top Chinese firms and regain its crown as the world’s top venue for IPOs.
The Chinese finance hub has suffered a steady decline in new offerings since a regulatory crackdown by Beijing starting in 2020 led some Chinese mega-companies to put their plans on hold.
The city saw just 30 IPOs in the first half of this year, compared with more than 100 annually between 2013 and 2020.
Midea’s IPO has eclipsed the combined valuation of all of Hong Kong’s new listings so far this year, and is the city’s largest since JD Logistics and Kuaishou Technology in the first half of 2021.
The Foshan-based company last week expanded the number of shares on offer by around 15 per cent to 566 million – an indicator of strong demand.
