Chinese home appliance giant Midea Group Co. has selected Bank of America Corp. and China International Capital Corp. to arrange its planned Hong Kong listing, according to people familiar with the matter.
(Bloomberg) — Chinese home appliance giant Midea Group Co. has selected Bank of America Corp. and China International Capital Corp. to arrange its planned Hong Kong listing, according to people familiar with the matter.
The Shenzhen-traded company is aiming for a listing in the city as soon as next year, said the people, who asked not to be identified as the information is private. Midea hasn’t made a final decision on the fundraising size, the people said.
Midea is China’s largest home appliance maker with a market value of about $55 billion. Its board on Wednesday approved a plan to explore a Hong Kong listing, selling up to 10% of its total capital.
Based on its market value, Midea’s Hong Kong share sale could be among the largest in the city in recent years. The Asian financial hub hasn’t hosted any listing of $1 billion or above so far in 2023 and there hasn’t been any deal raising $3 billion or more since JD Logistics Inc.’s $3.6 billion initial public offering in May 2021, according to data compiled by Bloomberg.
Deliberations are ongoing and details such as timeline and bank lineup could still change, the people said. Representatives for Bank of America and CICC declined to comment, while a representative for Midea didn’t immediately respond to requests for comment.
Founded in 1968, Midea manufactures air conditioners, refrigerators, washing machines, kitchen appliances and vacuum cleaners among others, according to its website. It sells products under brands including Midea, Comfee, Eureka, Little Swan and Vandelo. The Chinese firm in 2016 acquired Toshiba Corp.’s home appliance business. It also owns German robotics firm Kuka AG.
Midea remains acquisitive as it looks to expand its footprint beyond China. The home appliance giant earlier this year explored a potential acquisition of Electrolux AB and made a preliminary approach about a possible transaction, Bloomberg News has reported. Midea later dropped its pursuit of the white-goods maker after finding the Swedish company unreceptive to a deal, people familiar with the matter said at the time.
–With assistance from Ben Scent.
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