Headquarters of Xiaomi in Beijing. Image: testing/Shutterstock
Beijing tech player’s IPO was priced at lower end of marketed range.
Consumer electronics player Xiaomi has reportedly raised $4.7bn in an initial public offering (IPO) on the Hong Kong stock exchange.
The company priced its share offering at HK$17 per share ($2.17) and sold 2.1bn shares, valuing it at $54bn. According to Bloomberg, this is roughly half the company’s initial goal.
Xiaomi the money
Xiaomi had hoped to raise $10bn with its Hong Kong and Shanghai dual listing in a debut that would have valued the company at $100bn.
The company intended to launch new Chinese Depositary Receipts (CDRs) in Shanghai but put off its decision to list CDRs until the Hong Kong IPO was complete.
Nevertheless, the offering is the biggest first-time share sale in Hong Kong since 2016 when Postal Savings Bank of China priced a $7.6bn IPO. Alibaba made its $25bn stock debut in 2014.
Xiaomi, which employs 15,000 people in China, India, Malaysia and Singapore, was founded in 2010 by serial entrepreneur Lei Jun and it released its first Android-based smartphone, the Mi 1, in 2011.
The company is expanding globally and is making inroads into Europe with showrooms opening in Paris and Russia. It also plans to launch in the UK and Ireland through a partnership with Three.
Prior to revealing its IPO plans, Xiaomi was ranked as the world’s fourth most valuable tech start-up after receiving $1.1bn in funding from investors including DST Global, All-Stars Investment and GIC in 2014, valuing it at $46bn at the time.
Headquarters of Xiaomi in Beijing. Image: testing/Shutterstock
