Xiaomi to Raise US$10 Bn from Hong Kong IPO

Published By : 03 May 2018 | Published By : QYRESEARCH

Xiaomi, the China-based smartphone and connected device manufacturers filed for a Hong Kong IPO on Thursday, in reportedly the biggest listing by a Chinese tech enterprise in the last four years. With this listing, the value of the company can rise up to US$100 bn, which, in turn, may push it to become the leading Chinese IPO in this sector since 2014, when Alibaba Group Holding Ltd. raised US$21.8 bn. The announcement was made as the company gave investors the first broad indication at its financial position up ahead of the much-advertised IPO. The company stated that in 2017, its revenue was US$18 bn (114.62 bn Yuan), up 67.50% against 2016. It further added that it made a net loss of 43.89 bn Yuan against a return of 491.6 mn Yuan in 2016. The operating profit for the year 2017 was 12.22 bn Yuan, which was up from 3.79 bn Yuan in 2016.

Together with smartphones, this Chinese telecom firm also makes a number of internet-connected home appliances and gadgets, such as air purifiers, rice cookers, and scooters, though it derives most of its gains from its Internet services. In the smartphone Industry, its reasonably-priced handsets pose a threat to key global smartphone vendors, especially Apple Inc. and Samsung Electronics Co. Ltd. Xiaomi's IPO is anticipated to be one of the firsts in Hong Kong under newly implemented rules, which were enforced on Monday in a bid to attract more tech listings, as competition between Hong Kong, Mainland China, and New York heats up for major tech deals.

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