Midea Group Shares Surge in Hong Kong IPO

Midea Group's shares jumped 9.5% on their debut in Hong Kong, reaching HK$60.00 after the company raised approximately US$4 billion, marking the largest IPO in the city in over three years. The appliance maker's offering was priced at HK$54.80, reflecting strong demand as the institutional portion was oversubscribed eight times. This successful listing is seen as a potential catalyst for reviving Hong Kong's IPO market, which has faced a significant decline since 2020 due to regulatory crackdowns in China. Midea's IPO has exceeded the total valuation of all new listings in Hong Kong this year and is the largest since JD Logistics and Kuaishou Technology in 2021. The company, founded in 1968, has become a leading global seller of home appliances and recently reported a 14% increase in net profit. A diverse group of cornerstone investors, including Cosco Shipping Holdings and UBS Asset Management, have committed nearly US$1.26 billion to the IPO.