Chinese electronics manufacturer Xiaomi has started on the road towards an IPO on the Hong Kong stock exchange that could value the company at up to US$70 billion.
The Beijing-based company, which makes mobile devices, tablets and other electronics products, is set to raise up to US$6.1 billion from the listing, which should see it start trading in Hong Kong on July 9. It has lined up some "cornerstone investors" that has pledged to buy stock, including China Mobile and Qualcomm, according to a Bloomberg report.
The shares are set to be priced at between HK$17 to HK$22, which would value the company at up to US$69.8 billion. Previously, the company had hoped for a valuation of US$100 billion, according to previous Bloomberg reports.
The company generates about 70% of its estimated US$18 billion annual revenues from mobile device sales. In 2017 it shipped 92.4 million smartphones (a near 75% increase year-on-year) and achieved a global market share of 6.3%, making it the fifth-largest supplier of smartphones in the world behind Samsung, Apple, Huawei and OPPO, according to IDC.
In the first quarter of this year, Xiaomi shipped 28.1 million smartphones, of which 57% went outside China, according to Canalys. (See Canalys: Xiaomi Posts Strong Growth in Smartphone Shipments.)
— Ray Le Maistre, Editor-in-Chief, Light Reading