Xiaomi Aiming For a $10 Billion IPO – Preps for June 7 Listing Hearing at HK Stock Exchange
According to some people, Xiaomi is planning to request a formal approval from the Hong Kong stock exchange approval on June 7 for listing purposes, with the initial public listing being nearly $10 billion.
Reportedly, Xiaomi Was Looking at an IPO Valuation of Nearly $60 Billion at a Minimum
If the stock market’s listing committee approves the application, Xiaomi plans to price the share sale next month. A person speaking on the condition of anonymity said that the depending on the questions asked by the exchange, the listing hearing may be delayed a little.
Xiaomi is the fourth-largest smartphone manufacturer in the world right now, trailing behind Huawei. This would be one of the biggest global stock offers of the year and it will be a gift to the Hong Kong stock market. Early employees who had bought stocks in the company can expect to become millionaires once the company goes public.
According to some insiders, Xiaomi was looking at an IPO valuation of nearly around $60 billion to $70 billion. It is the first company to seek approval for a Hong Kong IPO with a weighted-voting rights structure since the change in rules last month. The valuation of the company’s business is based on the forecasts that its annual growth rate would be more than 50 percent in the next three years. The company has shown tremendous potential as it began as a startup and in a period of seven years, it has surpassed $16 billion.
This week, the company opened its first store in Paris. Wang Xiang, Senior Vice President of Xiaomi, said that the company plans to open more stores in regions like France, Italy, and Spain. Unfortunately, while Xiaomi does not sell its phone in the U.S., the company is planning to expand to the region by the end of 2018. There are other products that it sells in the country ranging from scooters and portable chargers through online retailers such as Walmart and Amazon.
The company is also planning to ship around 100 million phones this year. Xiaomi was earlier reported to be in talks with U.S. officials to bring its devices to the country. Let us see how those talks have held up when we revisit this news in the coming months.