HONG KONG — Chinese electronic appliance maker Midea is set to become Hong Kong’s largest initial public offering in more than three years after raising around US$4 billion this week, the company said Friday.

Midea priced its shares at the top of the range indicated in its prospectus, at HK$54.80 (US$7), the firm said in a filing to the Hong Kong stock exchange.

It also expanded the number of shares on offer by around 15 percent to 566 million — an indicator of strong demand for the offering.

The listing, set to take place on Tuesday, will be Hong Kong’s largest IPO since JD Logistics and Kuaishou Technology in the first half of 2021.

The roughly US$4 billion raised by Midea will also eclipse the combined valuation of all Hong Kong IPOs in 2024 so far.

The order books were closed a day earlier than planned as they were oversubscribed multiple times, Bloomberg News reported citing people familiar with the matter.

Cornerstone investors have agreed to buy more than one-third of Midea stocks, worth USD$1.26 billion. They include a subsidiary of Cosco Shipping Holdings and part of UBS Asset Management Singapore.

Founded in 1968, the Foshan-based company has grown to become the largest home appliance seller in the world with by market capitalisation with a revenue of US$52.7 billion last year, according to the firm’s prospectus.

Midea last month reported a 14 percent rise in net profit in the first half of 2024 despite weakening consumer spending due to China’s economic slowdown.

Hong Kong’s stock exchange saw a steady decline in IPOs after a regulatory crackdown by Beijing starting in 2020 led some Chinese mega-companies to put their listing plans on hold.

The bourse saw just 30 IPOs in the first half of this year, with fundraising down 25 percent on-year.

Before the pandemic, the Chinese finance hub was often crowned as the top IPO venue in the world, drawing more than 100 new listings annually between 2013 and 2020. — AFP