The smartphone and connected device manufacturer Xiaomi requested an initial public offering in Hong Kong that can raise $10 Billion and become the largest listing of a Chinese technology firm in nearly four years.
Xiaomi’s initial public offering, which will be the first listings for technology companies in Hong Kong through new rules, is a great triumph for the stock market as the competition is fast between Hong Kong, New York, and China.
People familiar with the plans told that the listing is expected to raise about $10 Billion through public offerings, which gives the market value of $80 Billion and $ 100 Billion to Xiaomi.
China’s Internet Company Alibaba Group Holding Limited made the largest $21.8 Billion in 2014 and this IPO if achieved it will appear in the top ranks of so far IPO filings.
Xiaomi’s prospectus gave investors the much-publicized view of their financial health before the IPO, which can be started as early as June, as per the details provided by the people working close to the process based on anonymity, as the details weren’t made public.
The global smartphone market has slowed down, despite the fact that Xiaomi helps in promoting overseas markets in Indian markets.
The company said that its income was more than 114.62 billion yuan in 2017 than 2016’s. Operating profit was 67.5 % in 2017, compared to 12.22 billion yuan in total, compared to 3.79 billion yuan a year ago.
With the smartphone, Xiaomi produces dozens of devices and appliances connected to the Internet including scooters, rice cookers, and air purifiers, but most of the revenue comes from internet services.
Their relatively cheap phone gives a direct challenge to Samsung Electronics Company Ltd and Apple Inc.
According to Counterpoint Research, who challenged the global recession in smartphone sales, Xiaomi doubled its shipment to become the world’s fourth-largest smartphone maker in 2017.
It is likely that Xiaomi is one of the first Chinese technology companies to request secondary listings in its local market using the planned route of China deposit receipts.
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