The deal size could be increased to US$4.6 billion later on if an overallotment option is exercised. Cornerstone investors, who commit to keeping shares for at least six months, have agreed to buy US$1.26 billion in Midea stock, amounting to more than a third of the offering.
They include a subsidiary of container-shipping company Cosco Shipping Holdings and a unit of UBS Asset Management.
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.
Order books were multiple times oversubscribed and closed a day earlier than planned, people familiar with the matter had said.
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Alternative asset manager Hillhouse Investment and Singaporean sovereign wealth funds GIC and Temasek Holdings had been considering investing in Midea’s listing, Bloomberg News reported.
At US$4 billion, Midea’s listing will be Hong Kong’s biggest debut since Kuaishou Technology’s US$6.2 billion listing in early 2021. Midea, at the top end of the price range, would be offering a roughly 20% valuation discount to its shares in Shenzhen before the deal launched.
