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Media Group stock rose Midea China Home Appliances surged 9.5% in its Hong Kong debut, after raising about $4 billion in the city’s biggest share offering in about four years..
Midea, which is also listed on the Shenzhen Stock Exchange, priced its shares at HK$54.80 ($7.03) in its Hong Kong IPO..
The share price rose to HK$60 ($7.70) on its first day of trading in Hong Kong on Tuesday, up 9.5% from the offering price..
Stock exchange data showed that Midea was the most traded stock by volume on the Hong Kong market so far on Tuesday, with 34.6 million shares worth HK$2.04 billion (US$261.8 million) changing hands..
Midea sold 565.9 million shares in the IPO that bankers hope will revive Hong Kong’s battered capital markets, where share sales have fallen to their lowest level in more than a decade..
The final price set was about 20% below Midea’s listed share price on the Shenzhen Stock Exchange. Mainland Chinese stocks typically trade at a premium to those listed on the Hong Kong Stock Exchange..
Media increased the number of shares offered for sale at the end of the offering after receiving strong demand from investors during the book building process..
The success of Midea’s IPO is expected to boost investor confidence in Hong Kong’s IPO market, where issuances have declined in recent years amid regulatory struggles in China..
Founded in 1968, China-based Midea Group is primarily engaged in the manufacture and distribution of home electronics products including air conditioners, washing machines, elevators and other products. Its brands include: Comfee andEureka andLittle Swan.
