Midea Group Co., Ltd (00300) is launching an IPO from September 9th to September 12th, attracting cornerstone investors such as China COSCO Shipping Corporation Limited (Hong Kong).

Midea Group Co., Ltd. (00300) will be publicly listed from September 9, 2024 to September 12, 2024. They plan to globally offer 492 million H-shares, with approximately 5.0% being offered in Hong Kong and approximately 95.0% internationally, as well as an additional 15% over-allotment option. The shares will be priced between HK$52.00 and HK$54.80 each, with each block consisting of 100 shares. It is expected that the H-shares will be listed on September 17, 2024. The company is a global leading, technology-driven provider of smart home and commercial/industrial solutions. Through their smart home business, they offer various household appliances to consumers. Through their commercial and industrial solutions, the company provides various solutions to business clients, such as home appliance compressors and motors, commercial air conditioners, industrial Siasun Robot & Automation, and supply chain services. The company has been listed on the Fortune Global 500 list for nine consecutive years, with operations in over 200 countries and regions, 33 research and development centers worldwide, 43 main production bases, and over 190,000 employees globally. Driven by the growth in their smart home and commercial/industrial solutions business, the company has achieved steady revenue and profit growth in past performance periods. In 2021, 2022, and 2023, their revenues were RMB 343.4 billion, RMB 345.7 billion, and RMB 373.7 billion respectively, with a compound annual growth rate of 4.3%. Annual profits were RMB 29 billion, RMB 29.8 billion, and RMB 33.7 billion respectively. For the four months up to April 30, 2023 compared to the same period in 2024, the company's revenue increased by 11.0% from RMB 131.4 billion to RMB 145.8 billion, with profits growing by 12.5% from RMB 12.1 billion to RMB 13.6 billion. Assuming an offer price of HK$53.40 per H-share and no exercise of offer price adjustment or over-allotment options, the net proceeds from the global offering are expected to be approximately HK$25.972 billion. Approximately 20% of the net proceeds will be used for global technology research and development within the next one to three years, 35% for ongoing investments in intelligent manufacturing systems and supply chain management upgrades within the next one to four years, 35% for improving global distribution channels and sales networks, as well as increasing overseas sales of proprietary brands within the next one to five years, and 10% for operational funds and general corporate purposes. Moreover, the company has entered into cornerstone investment agreements with cornerstone investors who have agreed, subject to certain conditions, to subscribe at the offer price or cause designated entities to subscribe for a certain number of shares, with a total amount of approximately $1.256 billion. Cornerstone investors include: COSCO Shipping Holdings Co., Ltd. (COSCO Shipping), UBS Asset Management (Singapore) Ltd. (UBS AM Singapore), China State-owned Enterprise Structural Adjustment Fund II Co., Ltd. (CSOESAF II), Golden Link Worldwide Limited (Golden Link), Splendor Achieve Limited (Splendor Achieve), Supercluster Universe Limited (Supercluster Universe), HCEP Master Fund (HCEP), GSC Fund 1 and Vision Fund 1, collectively referred to as "Ruyuan Fund", CPE Investment XVI Limited (CPE Investment), China Taiping Insurance Holdings Company, Metazone, Enreal Asset Management Limited (Enreal AM), Vanguard Focus Limited (Vanguard Focus), China Post Fund Management Co., Ltd. (China Post Fund), Jump Trading Pacific Pte. Ltd. (Jump Trading), MY Asian Opportunities Master Fund, L.P., Athos Capital Limited, Pamalican Fund Ltd.