Xiaomi Might File for Hong Kong IPO Subsequent Month at Decrease-Than-Anticipated USD70 Billion

Dou Shicong

(Yicai Global) April 16 — Leading Chinese smartphone maker Xiaomi Inc. may apply to go public in Hong Kong as early as next month at a value of up to USD70 billion, almost a third less than its initial listing plans.

The Beijing-based firm could become the first Hong Kong-listed company with weighted voting rights, Hong Kong Economic Times reported today. It will consider floating shares on the mainland via China Depositary Receipts after going public.

Xiaomi has made several pre-initial public offering share sales which value the firm between USD65 billion and USD70 billion, the report added, saying such a valuation would make Xiaomi the 12th-biggest public company in Hong Kong by market cap.

The company began making IPO preparations late last year and was reported to be choosing a bank to handle a USD100 billion listing in January. It has been waiting on the outcome of a second inquiry by the Hong Kong Stock Exchange into weight voting rights arrangements, which was completed in late March with results due to be announced next week.

The HKSE is lowering stock listing requirements to entice innovative companies to go public in the special administrative region and securities authorities on the mainland have unveiled the CDR program to incentivize tech unicorns. The China Securities Regulatory Commission has not yet released full details for CDR programs, so Xiaomi is pushing ahead with its Hong Kong listing first, the report added.

Xiaomi commanded a 6.3-percent share of the global smartphone market last year, in terms of shipments. It distributed 92.4 million handsets to rank third among Chinese phonemakers, behind Huawei Technologies Co. and Guangdong Oppo Mobile Telecommunications Corp., according to data from International Data Corp. Founder and Chief Executive Lei Jun vowed at an annual conference in February that the company would retake the China top spot within the next two and a half years, after sliding from the throne in 2016.

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