A man works at a workshop of Midea Group in Guangzhou, south China's Guangdong Province, on March 3, 2023. (Photo/Xinhua)

Chongqing - Chinese home appliance giant Midea Group debuted on the Hong Kong Stock Exchange on Tuesday, becoming the second "A+H" listed white goods giant after Haier.

Bonnie Y Chan, chief executive officer of HKEX, stated that Midea Group raised over HK$30 billion ($3.85 billion) in its listing, with the amount potentially reaching $4.6 billion if the oversubscription right is exercised. This marks the largest IPO since the video-sharing app Kuaishou Technology listing in February 2021 and the second-largest globally this year.

According to the prospectus, 20 percent of the proceeds from the H-share offering will be allocated to global research and development, 35 percent to continuous investment in upgrading the intelligent manufacturing system and supply chain management, 35 percent to strengthening global distribution channels and sales networks, and increasing overseas sales of its own brands, with 10 percent reserved for working capital and general corporate purposes.

The data from Midea showed that in the first half of this year, the company achieved a total revenue of 218.1 billion yuan ($30.74 billion), a 10.3 percent increase year-on-year.

As of Tuesday's close of trading, Midea Group's H-shares rose nearly 8 percent on their first day of listing.

Yan Zhaojun, an analyst at Zhongtai International, told Shanghai Securities News that Midea initially set a price range of HK$52 to HK$54.8 per share, with the final offering priced at the upper limit of HK$54.8 per share. Compared to Midea's A-share closing price of 63.51 yuan on September 13, the Hong Kong listing represents a discount of around 20 percent.

Yan said Midea opted for relatively conservative pricing, which helps boost the confidence of Hong Kong stock investors and allows Midea to focus more on expanding its global business footprint, attracting attention from international investors.

Chan noted that a series of large IPOs is expected soon. According to Xinhua, Hong Kong's refinancing volume has reached $20 billion this year, with around 100 IPO applications currently pending, including some aiming to raise $1 billion each.

Positive signals are emerging in Hong Kong's fundraising market. In April, Chan added that the China Securities Regulatory Commission introduced five measures to support Hong Kong's capital markets, including facilitating more IPOs from leading companies in the Chinese mainland.