What’s new: Midea Group Co. Ltd. (000333.SZ) has completed its registration with China’s securities regulator for a Hong Kong IPO, as the home-appliance maker seeks more capital to fund its global expansion.
The Shenzhen-listed company plans to issue up to 650.8 million ordinary shares to trade on the Hong Kong Stock Exchange, according to a notice published by the China Securities Regulatory Commission (CSRC) on Tuesday.
Midea has 12 months to complete the IPO before the registration expires and it will need to submit updated information, according to the notice.
The company has not revealed a timetable or pricing details of the listing.
The background: Midea is one of more than 150 companies that have received registration completion notices for overseas listings from the CSRC since new rules came into effect in March last year.
If successful, the Hong Kong IPO will provide another major financing channel for Midea, which has put expanding overseas as one of its top priorities.
The company laid bare its overseas ambitions in its IPO prospectus filed in April. It plans to use the IPO proceeds to expand its global research & development, upgrade its global sales network and boost overseas sales of its brands.
From 2021 through 2023, Midea generated about 40% of its annual revenue from its overseas markets, according to the prospectus.
Foshan-based Midea is the world’s No. 1 home appliance company by both sales volume and revenue, ranking among the top three globally for residential air conditioners, laundry appliances, refrigerators and kitchen appliances in 2023, according to Frost & Sullivan market research cited in the prospectus.
Founded in 1968, Midea sells products under brands including Midea, Comfee and Little Swan. The Chinese firm in 2016 acquired Toshiba Corp.’s home appliance business. It also owns German robotics firm Kuka Group.
Contact reporter Ding Yi (yiding@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)
