Midea Group, the Chinese home appliances giant, saw its stock jump by up to 9.5% on its first trading day in Hong Kong on Tuesday. The company raised nearly $4 billion in the city’s largest share offering in almost four years, reviving hopes for more large-scale Chinese listings. Midea, also listed in Shenzhen, priced its shares at HK$54.80 each for the Hong Kong debut, with the stock reaching as high as HK$60 per share.
The offering marked the largest in Asia this year and the second largest globally, trailing only Lineage Inc.’s $5.1 billion IPO in New York in July. Midea’s institutional tranche was oversubscribed by eight times, and its retail portion was covered 5.31 times, showcasing strong investor interest.
Analysts are optimistic that Midea’s strong debut could spark more mainland Chinese companies to pursue listings in Hong Kong, despite trade tensions between the U.S. and China and global high-interest rates. As of now, Midea has contributed to $6.5 billion worth of IPOs in Hong Kong this year, more than double last year’s figure of $2.7 billion.