As part of its worldwide strategy, Chinese home appliance manufacturer Midea Group stated that it is looking into the possibility of listing in Hong Kong. Midea, which is currently listed on the Shenzhen stock exchange, stated in a filing that the new shares to be issued will make up no more than 10% of the increased capital. According to three people with intimate knowledge of the situation, the deal is being worked on by Bank of America and China International Capital Corp (CICC). Since the information is not yet widely known, the sources could not be identified.
In morning trading, Midea shares fell as much as 3.6% to 55.5 yuan (US$7.70), a two-month low. Before the listing intention was made public, Midea's market capitalization was US$56.47 billion, making a sale of up to 10% one of the biggest listings in Hong Kong since 2021.
According to one of the sources, the corporation is aiming to sell up to 8% to 10%. The business stated in the filing on Wednesday that the details of the plans, including the timetable, are still undetermined.
One of the individuals stated that the initial filing with the Hong Kong Stock Exchange would take place this year, with a possible share sale occurring in 2024. According to information from data provider All View Cloud, which was used in the company's 2022 annual report, Midea outsold other competitors in terms of air conditioner retail sales in China last year and placed second in terms of washing machine retail sales.
In an effort to streamline the management structure of the business and widen Annto's funding options, the company said last month that it was developing a plan to spin off its logistics division Annto and float it on the Shenzhen stock exchange.