Published: Tue, July 10, 2018
Electronics | By Kelly Massey

Xiaomi gets off to a slow start with Hong Kong IPO

Xiaomi gets off to a slow start with Hong Kong IPO

The IPO opened at a price of HK $16.60 (about $2.12 USD) per share which is a fair amount below the original IPO value of HK $17.

Xiaomi first announced it was going public on May 3 and hoped to raise $10 billion United States dollars to get to a total valuation of $100 million.

In June, we said that Xiaomi was looking to raise about $5 billion (HK$39.22 billion) from shares, while it didn't meet its goal in the first day of trading, it is over half way there and maybe things will pick up for the unique firm.

Beijing-based Xiaomi is the first firm in Hong Kong to trade with a controversial dual-class structure since listing rules were overhauled to allow weighted voting rights for different sets of shareholders. The main Hong Kong stock market index ended 1.3 percent higher. Apple is trading at 16 times earnings and Chinese social media giant Tencent is trading at 36 times.

Xiaomi's float failed to attract strong interest among investors with the retail tranche gathering demand that was only 9.5 times the number of shares on offer, according to its filing on Friday.

Russian Federation receive rapturous welcome at FIFA Fan Fest
Prediction France have improved after a slow start in the group stages where they made hard work of Australia and Peru. Fans in Wimbledon's Centre Court turning around to watch England's World Cup quarter-final against Sweden from TV.

Xiaomi, which helped to pioneer the trend for ultra-low-priced smartphones, says it plans to become an equipment-and-hardware brand alongside Apple Inc.

"We are an internet firm", Xiaomi's founder and chief executive Lei Jun told the listing ceremony at the Hong Kong stock exchange. It is also the first under the city's new exchange rules permitting dual-class shares, common in the USA tech industry in an attempt to attract tech floats.

"We are an internet firm".

In the end, it had to settle for a more modest $54 million valuation as it raised $4.7 billion from the IPO. That is far short of the oversubscription rates for other tech IPOs in Hong Kong.

The company is now the biggest smartphone vendor in India and is pushing into European markets including Spain and Russian Federation, though it has lost share in China recently to lower-cost rivals.

Like this: