Midea Group Secures Approval for $1 Billion IPO in Hong Kong Amid Market Challenges

Midea Group, the largest home appliances manufacturer in the world, has received a green light from China’s market regulator for its initial public offering (IPO) in Hong Kong. The China Securities Regulatory Commission (CSRC) confirmed that Midea plans to issue up to 650.8 million ordinary shares on the Hong Kong stock exchange. This move marks a significant step forward for Midea as it attempts to expand its presence in international markets.

The company, which is based in Foshan, Guangdong province, was founded in 1968 by He Xiangjian. He Xiangjian’s family has an estimated net worth of about US$22.9 billion. Midea is known for producing a wide range of products, including homeware and air-conditioning systems. Its market capitalization is currently around HK$436 billion (US$55.8 billion), with a reported revenue of HK$373.7 billion for 2023. The decision to pursue an offering comes a decade after Midea first listed shares in Shenzhen.

Given the prospects of raising US$1 billion, this IPO could be a significant event, marking the first billion-dollar listing in Hong Kong since August 2022. The CSRC is keen to streamline the IPO approval process, which could lead to a surge in offshore listings. This year has seen a year-on-year decline in fundraising and the number of new listings in Hong Kong, highlighting the competitive market environment.