Xiaomi files for largest IPO since 2014 in Hong Kong

Xiaomi files for largest IPO since 2014 in Hong Kong

But Bloomberg News, citing people with knowledge of the matter, reported that it was expected to be worth at least $10 billion and could value the business as high as $100 billion.

The company's financials showed 2017 revenue of RMB 114.62 billion ($18 billion), a 67.5% increase from the previous year.

"As far as we know, apart from Xiaomi, there has never been another smartphone company that has successfully rebounded after a decline in sales", he wrote. People familiar with the matter told Bloomberg that the offering is expected to be worth at least United States dollars 10 billion, making it the biggest since Alibaba's debut in 2014.

Xiaomi doubled its shipments in 2017 to become the world's fourth-largest smartphone maker, according to Counterpoint Research, defying a global slowdown in smartphone sales.

The Chinese smartphone maker is taking advantage of changes in Hong Kong that mean companies with different share classes can now list in the city. It's a big win for Hong Kong Exchanges & Clearing Ltd., whose officials spent years pushing to scrap a ban on the weighted voting rights that give founders control even with minority ownership.

Asia Mixed on Trade Talk
Xiaomi files for largest IPO since 2014 in Hong Kong

While Xiaomi continued to expand its product portfolio to include more smart home devices and lifestyle products, it had also been working hard on expanding its physical presence around the world. Xiaomi, which initially had an online presence, opened hundreds of retail stores and also its strong growth in the home market and India were major factors for its resurgence. Xiaomi, for the first time, has revealed its fiscal details to the public.

Challenges persist: It's unclear if Xiaomi can really convince US wireless carriers to sell its phones amid trade tensions with China. Despite rising sales, the company was hit by huge losses.

The company is also facing greater competition in emerging markets like India and Indonesia, where competitors Huawei, Oppo and Vivo are expanding.

Xiaomi said its gross profit margin for smartphones was 8.8 percent a year ago, which is much lower than the estimated profit margin of around 60 percent that Apple has for its flagship iPhone devices. The wide spectrum of products includes air purifiers, rice cooker, wearables, electric scooter, Mi TV, Mi Drone and etc. Xiaomi said it registered a revenue of 23.5 billion yuan past year from its ecosystem.

Will the Korean Crisis Finally Bring the UN Into the Asian Century?
Hasina said Bangladesh has already discussed the matter with China, India, Thailand and Laos. "The lack of a U.N. Bangladesh and Myanmar signed the accord last November but no refugee has yet been sent back from Bangladesh.

Related Articles