The Hong Kong stock market recently welcomed a giant IPO: Midea Group Co., Ltd. With a financing scale of 26 billion Hong Kong dollars, it set a new high in over three years, in other words, this is the largest IPO after the end of the bull market for new listings.
Midea has been listed on the A-share market for over twenty years and has a good reputation in the capital markets.Now that it has come to a secondary listing in the Hong Kong stock market, can it be traded for new shares?
The key is not in the fundamentals. With Midea's market cap of over 400 billion yuan, it has shown a steady increase of over 30% in the A-share bear market over the past two years, so the stability of its fundamentals is not up for discussion.The key lies in two points: discount and selling pressure.
First, let's look at the discount.
Midea's issuance price range is HK$52-54.8, compared to last Friday's closing price of RMB 63 on the A-share market, representing a discount of approximately 21-25%. In fact, the pricing basis for Midea was last Wednesday's closing price, with a discount range of 24%-28%. However, there were consecutive declines on Thursday and Friday, followed by a 3% drop on Monday, leaving a discount of only 18%-22%. So, has this discount range left any leeway?
From the perspective of the entire large cap, out of the over 140 AH stocks, I calculated the stock prices from last Friday. The highest discount of Hong Kong stocks is over 80%, while the lowest is just over 10%, previously there were even premiums. The median discount is around 47%, much higher than Midea Group Co., Ltd's discount.
Of course, the overall market data is not representative. Let's also consider the market cap factor. Generally speaking, the larger the market cap, the higher the recognition from foreign investors, and the lower the discount rate. Among them, A-share market cap...