Xiaomi Rumored for the Biggest Tech IPO in History – Plan Slated for Next Year
Where owning a premium smartphone would be a fluttering dream for several consumers several years ago, Xiaomi introduced a business model that allowed it to gain a huge momentum in the market, giving inspiration to other manufacturers to present their high-end offerings to consumers. The Chinese manufacturer has now been rumored to file an IPO, and according to sources close to the matter, it could be the biggest tech IPO in history.
Xiaomi Was Reported as Most Valuable Startup in 2014 - Worth Around $55 Billion During the Same Period
According to Reuters, Xiaomi has requested banks to pitch next Friday for an IPO in 2018, at least according to the people that are close to this information.
“Xiaomi was valued at $46 billion in a 2014 funding round completed before its sales stagnated. More recently it has seen expectations of its value pick up following strong results this year.
Its float could be the world’s “largest technology IPO” next year, according to one of the people.”
Another source claims that adding a valuation of a $100 billion will not be considered as a ‘crazy number’, suggesting that it is more than possible for Xiaomi to file for the biggest tech IPO in history.
Apart from its smartphones, the manufacturer has also branched out to different categories revolving around the consumer electronics segment and selling them at price/performance ratios has given the company an edge over its competitors.
Strangely enough, the company has not officially entered the United States, which would give Apple and Samsung a tough battle. Huawei is also yet to officially penetrate this market with smartphone offers from carriers, so we feel that Xiaomi would have to go through the same gauntlet to enter developed markets.
“The world’s most valuable startup for a brief period in 2014 was worth about $55 billion at the end of June, according to one person close to the company.”
However, the report stated that Xiaomi’s founder, Lei Jun said a while back that the company would not go public until 2025. It is possible that after seeing the impressive financial numbers, Xiaomi wants to change its plans as quickly as possible.
Do you think Xiaomi is poised to file for an IPO in 2018 and could it be the most valuable tech initial public offering? Let us know down in the comments.
News Source: Reuters