Private equity firm Hillhouse Investment, Singapore’s wealth fund GIC and state investor Temasek are said to be in talks to invest in appliance maker Midea’s Hong Kong initial public offering, according to a Bloomberg report.
Hillhouse is said to be weighing an order for more than $1 billion in the offering, while GIC is said to be in talks for about $500 million of stock, the report said, citing anonymous sources. Other investors including Temasek are also in talks to buy shares.
Talks are ongoing and details such as the size of potential investments have not been finalised, according to the report.
Midea, which is also listed on the Shenzhen Exchange, is seeking to raise as much as $3.5 billion in its Hong Kong IPO. The listing would be the biggest in Hong Kong since JD Logistics raised $3.16 billion in 2021.
The Foshan-based appliance maker is offering 492.14 million shares at HK$52 ($6.67) to HK$54.80 ($7.03) each, according to a company filing with Hong Kong’s stock exchange.
Midea has guided investors toward the top end of the range, the Bloomberg report said, adding that order books will close a day earlier than planned as it has been oversubscribed. A low-end pricing would mark a discount of 25% to its Shenzhen-listed stock per Friday’s closing.
Its shares are scheduled to start trading on September 17.
Midea, established in 1968 by Chinese billionaire He Xiangjian, is the world’s largest producer of major appliances, according to its website. Midea makes lighting, water appliances, floor care, small kitchen appliances, laundry, large cooking appliances, and refrigeration appliances.
