By Scott Murdoch

SYDNEY (Reuters) - Chinese home appliance maker Midea Group is set to price shares at the top of an indicative range to raise at least $3.46 billion in a Hong Kong listing, said three people with direct knowledge of the matter.

Book building for the deal has been accelerated to close on Wednesday, the people said.

Midea has an option is increase the size of the deal to $3.98 billion in the event of strong demand and the firm is expected to exercise that option, one of the sources said.

The listing would be the biggest in Hong Kong since JD Logistics raised $3.16 billion in May 2021.

The sources could not be named discussing confidential information. Midea did not immediately respond to a request for comment.

Midea launched the deal on Monday to sell 492.1 million shares in the Hong Kong offering, the filing showed, with the stock to be priced between HK$52 and HK$54.80 per share.

Book runners for the deal told investors on Wednesday they risked missing out if orders were not placed at the top, indicating the price will be set at HK$54.80 per share.

Books were multiple times oversubscribed with orders from investors, one of the sources added.

($1 = 7.7972 Hong Kong dollars)

(Reporting by Scott Murdoch; Editing by Christopher Cushing and Christina Fincher)