Xiaomi files in Hong Kong for the largest IPO in four years

Xiaomi didn't disclose how much it plans to raise, but the expected amount is at least $10 Billion.

The listing could value the company at up to Dollars 100 billion and would be the biggest Chinese tech IPO since Alibaba Group Holding Ltd raised USD 21.8 billion in 2014.

Xiaomi did disclose its latest financial results, showing revenues rose 67.5 percent past year to CNY 114.6 billion. For smartphones alone, it had a revenue of 80.56 billion yuan, up 65 percent from the previous year.

Xiaomi posted a 43.9 billion RMB ($6.9 billion) loss in 2017 on account of issuing preferred shares to investors (54 billion RMB) but the growth story is healthy.

Operating profit for 2017 was CNY 12.22 billion, up from CNY 3.79 billion a year ago.

Xiaomi experienced a challenging 2016 amid intense competition from other low-priced domestic rivals such as Oppo and Vivo, but it managed to stage a recovery in 2017 by revamping its sales model and making a big push to India. The move comes as the Chinese smartphone maker has expanded quickly to become the fourth-largest seller in the world.

"Investors will like Xiaomi's business model because growing user numbers guarantee profits in the future", said James Yan, an analyst at Counterpoint.

The city, overtaken by Shanghai past year for the first time in the global IPO stakes, was anxious to reclaim its crown to sustain jobs in the financial industry and maintain revenue from stock listings.

After a challenging few years that saw a decline in smartphone sales, Xiaomi doubled down on offline retail with the opening of more than 200 Apple-esque retail stores across China while also branching into a wide product range of dirt-cheap internet-connected devices.

Xiaomi's IPO, which will be one of the first in Hong Kong under new rules to attract tech firm listings, is a major win for the bourse as competition heats up between Hong Kong, New York and the Chinese mainland.

The company said it would have a "weighted voting rights structure", where class A share holders exercise 10 votes while holders of class B shares exercise one vote. In the last quarter of 2017, the firm said that Xiaomi was ahead of Samsung in India in terms of market share. Lei Jun, Co-founder and CEO, said CDRs was "an excellent idea" and a "great policy innovation".

If confirmed, a share offering in the former British colony would be a coup for Hong Kong, which was said to be vying with NY and Shanghai for Xiaomi's listing.

Bloomberg reported that Xiaomi has picked China's Citic Securities to handle its issuance of Chinese depositary receipts (CDR), which is most likely to come after its Hong Kong IPO.


Popular
  • Firefighters tackle blaze at Trump Tower in Baku

    Firefighters tackle blaze at Trump Tower in Baku

    Construction of the building began in 2008 and by the year 2015, all external work on the facade of the building was completed. Garten said the due diligence on the project's partners had been conducted by a third party, and nothing troubling was found.
    Sweden confirm Zlatan Ibrahimovic will not play at 2018 World Cup

    Sweden confirm Zlatan Ibrahimovic will not play at 2018 World Cup

    Speaking last week, Anderson said he had not spoken to Ibrahimovic about a return but insisted the final decision on the squad would be his.
    Tim Cook will meet with President Trump later today

    Tim Cook will meet with President Trump later today

    Apple and other hardware makers have deep ties with China, where they build most of their products for export around the world. The president frequently uses Cook and Apple as an example of how he says his tax cut package is creating jobs.
  • United States  growth of 2.3 per cent slows but beats forecasts

    United States growth of 2.3 per cent slows but beats forecasts

    According to the Commerce Department, GDP increased at a 2.3% annual rate, above the 2% analysts polled by Reuters were expecting. If it lasts through June of 2019, it will become the longest expansion in history, surpassing the 10-year recovery of the 1990s.
    Monkey selfie suit rejected in US Federal Court

    Monkey selfie suit rejected in US Federal Court

    The judges involved in the case concluded that " next friends " can not represent animals and the lawsuit was thrown out of court. Both judges were critical of PETA and its decision to settle the case after oral arguments suggested it would lose the appeal.
    Find out where you can get free pretzels for National Pretzel Day

    Find out where you can get free pretzels for National Pretzel Day

    The Philly Pretzel Factory in Copperas Cove is one such place where all day customers can come and grab a free warm pretzel. Auntie Anne's is expected to offer a "buy one pretzel, get one free" deal to people with the Pretzel Perks app on Thursday.
  • Boeing (BA) PT Set at $336.00 by Goldman Sachs

    Boeing (BA) PT Set at $336.00 by Goldman Sachs

    COPYRIGHT VIOLATION NOTICE: This piece was first posted by Enterprise Leader and is the sole property of of Enterprise Leader. Bernstein raised their price objective on shares of Boeing from $402.00 to $422.00 in a report on Friday, February 2nd.
    Alfie Evans REFUSED treatment in Italy after judge blocks final legal fight

    Alfie Evans REFUSED treatment in Italy after judge blocks final legal fight

    Mr Justice Hayden said: "This represents the final chapter in the case of this extraordinary little boy ". He is now being hydrated and given oxygen to stop him becoming distressed.
    WhatsApp now banned for children and teens under 16 in some places

    WhatsApp now banned for children and teens under 16 in some places

    The blog post also points to safety tips on the service, such as the ability to block unwanted users, and delete and report spam. Facebook , which has also been criticised for its handling of personal data, is taking a different approach to younger users.
  • Minimum unit pricing for alcohol: Everything you need to know

    Minimum unit pricing for alcohol: Everything you need to know

    The Scottish government claims minimum pricing will save 58 lives in its first year and reduce hospital admissions by 1,300. Alcohol prices in Scotland are skyrocketing, as a new minimum pricing scheme comes into force.
    $199 Oculus Go VR headset goes on sale today

    $199 Oculus Go VR headset goes on sale today

    As for how much you'll pay for the chance to jump into VR with no wire, it depends on what Oculus Go storage option you choose. That architecture has helped Facebook and Oculus keep the price down, of course, but it has also forced some compromises.
    Now you can upload multiple videos, photos on Android

    Now you can upload multiple videos, photos on Android

    Tapping on each photo will bring it into a fullscreen view with options for adding stickers, filters, etc.as you normally would. The new update allows users to upload up to 10 pieces of media, be it pictures or videos which will be posted in a single shot.

CONNECT