GIC, Hillhouse in talks to invest in Midea’s Hong Kong IPO: sources

SINGAPORE sovereign wealth fund GIC and alternative asset manager Hillhouse Investment are considering investing in appliance maker Midea Group’s Hong Kong listing, sources said.

GIC is weighing a subscription of about US$500 million in the offering, while Hillhouse is in talks to place an order for more than US$1 billion of stock, informed sources, who asked not to be identified as the information is not public.

Other institutions including state investor Temasek are also in discussions to buy shares, they added.

Shenzhen-listed Midea is seeking to raise as much as US$3.5 billion in the Hong Kong share sale, which is set to be the market’s biggest in more than three years.

Order books are multiple times oversubscribed and will close a day earlier than planned, the sources said.

Talks are ongoing and details such as the size of potential investments have not been finalised.

Representatives for Midea, GIC and Temasek declined to comment, while Hillhouse did not immediately respond to requests seeking comment.

The Foshan-based company is offering 492.1 million shares at HK$52 to HK$54.80 a piece, showed a listing document dated Monday (Sep 9).

At the low end of the marketed price range, that represents a 25 per cent discount to the company’s Shenzhen-traded shares on Friday. Midea has guided investors toward the top end of the range, the sources noted. BLOOMBERG