Haier Share Issue: D-share issuance in Frankfurt

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Europe

02:46

China's home appliance manufacturing giant Haier has gone public in Europe offering more than 300 million shares of the company on the China Europe International Exchange or Ceinex. From the floor of the Frankfurt stock exchange in Germany, Natalie Carney has more.

A monumental moment for all.

The first initial public offering outside of China for Haier, the world's largest household appliance manufacturer.

It was also the debut listing under a new program founded three years ago to connect Chinese issuers with European liquidity, know as CEINEX.

YANNICK FIERLING HAIER EUROPE CEO "We started to invest in this region significantly in 2010. We are very proud of our organic growth but certainly, we want to accelerate that. We want to get to one of the leading positions in the coming years and I think being here is a great starting point."

That starting point was 1 euro and 6 cents per share, 1 cent above the final placement price of 1 euro 5.

Chinese companies inviting foreign investment list H shares in the Hong Kong Special Economic Zone, S shares in Singapore, N shares in New York and now D-shares in Frankfurt.

NATALIE CARNEY FRANKFURT "Launching their IPO on CEINEX was part of Haier's marketing strategy. Prior to their launch of 305 million D-shares in Europe, Haier was listed only on the Shanghai stock exchange. Now they have the potential to raise their product image across the continent through international investors."

Haier has been doing very well in other markets, having acquired Japanese giant SANYO Electric's white goods business in parts of Asia and GE Appliances from the American General Electric Company in 2016.

So now they have their eyes set on Europe.

LI PAN VICE PRESIDENT OF HAIER, IN CHARGE OF OVERSEAS MARKET "We had almost all the footprint in other continents, so now Europe is one of our major focus, so this is kinda of the one step forward towards that strategy."

Another step is Haier's recently announced 475 million euros acquisition of Italy's home appliance maker, Candy, which it hopes to finance through this IPO.

The Chinese company also plans to beef up its marketing across Europe.

YANNICK FIERLING HAIER EUROPE CEO "The biggest handicap we do have is brand awareness, so I think we will be investing into brand awareness. We have a very detailed plan for the coming years in order to get to the same level as most of our competitors."

Yet while there were plenty of smiling, happy faces here in Frankfurt, Haier's share prices hardly moved throughout its first day of trading begging the question, will this optimism for CEINEX'D-Shares market extend outside the trading room floor?

Natalie Carney, CGTN, Frankfurt.