Midea is said poised to raise US$4 billion in Hong Kong listing

CHINESE appliance giant Midea Group is poised to raise US$4 billion in its Hong Kong listing in an enlarged deal that will be priced at the top of the marketed range, sources familiar with the matter said, in a show of demand for the city’s biggest share sale in three years.

The Foshan, China-based company plans to sell shares at HK$54.80 apiece, the sources said, asking not to be identified because the discussions are private. The listing is scheduled to take place in Hong Kong on Tuesday (Sep 17). Midea is set to sell 566 million shares after exercising an option to boost the size of the offering due to strong demand, the sources said.

Talks are still ongoing and no final decisions have been made, the sources said.

A representative for Midea declined to comment.

Midea had planned to offer 492.1 million shares at HK$52 to HK$54.80 a piece, according to its listing document dated Monday. Midea had guided investors towards the top end of the range, sources familiar with the matter have said.

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

Alternative asset manager Hillhouse Investment and Singaporean sovereign wealth funds GIC and Temasek Holdings had been considering investing in Midea’s listing, Bloomberg News has reported. BLOOMBERG