Thursday, 24 May 2018

Xiaomi Hong Kong IPO could raise $10 billion

By Chris Kelly, Total Telecom
Thursday 03 May 18

Xiaomi's profits have soared following the company's successful expansion into a number of lucrative international markets

Chinese smartphone maker Xiaomi hopes to raise $10 billion through its Initial Public Offering (IPO) when it lists on the Hong Kong Stock Exchange in the coming months.  The listing would rank among the 20 biggest ever IPOs…

Chinese smartphone maker Xiaomi hopes to raise $10 billion through its Initial Public Offering (IPO) when it lists on the Hong Kong Stock Exchange in the coming months. 

The listing would rank among the 20 biggest ever IPOs, and could value the company as highly as $100 billion. 

Last year, Xiaomi tripled its operating profit to $1.9 billion (RMB 12.2 billion), as sales of its handsets soared, and the company enjoyed some big wins in international markets. According to data supplied by the IDC, Xiaomi is the world's fourth biggest manufacturer of smartphone handsets, behind Samsung, Apple and Huawei. In the first quarter of 2018, Xiaomi enjoyed an 8.4 per cent market share for the manufacturing of smartphone handsets, shipping 28 million handsets to the global market. This represents an 87.8 per cent increase on its position in 2017. The firm is currently the top selling smartphone brand in India. 

Xiaomi is expected to reinvest the money raised at the IPO into research and development, Internet of Things initiatives and expanding the company's global reach. 

As recently as February 2018, Xiaomi was said to be seriously considering entry into the US market, but it remains to be seen whether this remains a key priority for the firm following the rapid deterioration of US relations with companies in China's telecoms sector.  Xiaomi has so far been unaffected by a slew of targeted trade tariffs and banning orders by the US against Chinese companies that it perceives as a threat.  

Xiaomi is expected to list on the Hong Kong Stock Exchange in early July 2018. 

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