Published: 12:20, August 10, 2023 | Updated: 16:14, August 10, 2023
Home appliance maker Midea eyeing potential HK listing
By Reuters

In this undated file photo, a visitor checks out Midea home appliances during an exhibition in Shanghai. (XING YUN / CHINA DAILY)

Chinese mainland's home appliance maker Midea Group said on Wednesday it is studying a potential listing in the Hong Kong Special Administrative Region as part of its global strategy.

The new shares to be issued would account for no more than 10 percent of enlarged capital, Midea, already listed in the Shenzhen stock exchange, said in a filing.

Bank of America and China International Capital Corp (CICC) are working on the deal, according to three sources with direct knowledge of the matter.

The sources could not be named as the information is not yet public.

Midea's market capitalization was $56.47 billion before the listing plan was made public, meaning a deal of up to 10 percent would be one of the largest listings in the HKSAR since 2021

Bank of America and CICC declined to comment.

Midea shares dropped as much as 3.6 percent to 55.5 yuan ($7.70) in morning trading on Thursday, hitting a two-month low.

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Midea's market capitalization was $56.47 billion before the listing plan was made public, meaning a deal of up to 10 percent would be one of the largest listings in the HKSAR since 2021.

The company is looking to sell as much as 8 percent to 10 percent, one of the sources said.

Specific plans, including the timeline, remain uncertain, the company said in the Wednesday filing.

The initial filing to the Hong Kong Stock Exchange would be made this year, with a likely share sale sometime in 2024, one of the sources added.

Midea ranked first in retail sales of home-use air conditioners on the mainland last year and second in retail sales of washing machines, the company said in its 2022 annual report, citing data from data provider All View Cloud.

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The company said last month it was formulating a plan to spin off its logistics unit Annto and list it on the Shenzhen stock exchange in a bid to streamline the company's managerial structure and expand Annto's funding channels.