Xiaomi Files For IPO On Hong Kong Stock Market

Xiaomi Files For IPO On Hong Kong Stock Market

Xiaomi Files For IPO On Hong Kong Stock Market

Chinese tech company, Xiaomi has recently filed for an initial public offering in Hong Kong.

The US$10 billion fund-raising target, if achieved, will make it the biggest IPO since Chinese internet giant Alibaba Group Holding raised a total of US$25 billion through a NY listing in 2014.

The filing implies that Xiaomi will take advantage of hongkong rules that allow businesses to problem high insiders stocks as well as shares with reduced voting-rights into the general public. The company has posted a net loss of 43.9 billion yuan in 2017 while the revenue increased by 67.5 percent a year ago. However, the company's revenue reached 114.62 billion Yuan ($18 billion) in 2017, which is up by 67.5 per cent against 2016.

"The U.S. market is very important to us but we are very, very carefully building our resources to serve the U.S. consumer", Xiaomi's head of worldwide business, Wang Xiang, told CNBC in February. Xiaomi heavily relies on the sales of competitively priced smartphones and other consumer electronics and was founded in 2010.

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The disaster killed 11 and sent oil spewing into the Gulf, resulting in the worst offshore oil spill in USA history. The company then faces charges of about $2 billion next year, and then more than $1 billion a year out past 2030.

The main business of Xiaomi is phone, but the company also makes a broad range of other devices that are internet connected including laptops and a smart rice cooker. In its filing Thursday, the company said that in the event of trade or import protection policies, "our business and operations may be adversely affected".

Xiaomi filed its IPO in Hong Kong today, and it could end up being the biggest in history.

The numbers underscore how Xiaomi has remained resilient even as the global smartphone market has slowed, helped in part by a push overseas into markets like India.

After inevitably hitting a stagnation point, the so-called "Apple of China" bounced back stronger than ever, surpassing Samsung in India's essential smartphone market while slowly expanding across Western Europe and ranking fourth overall among the world's top Q1 2018 vendors. The amends in the policy is expected to spin a new growth tangent for companies that will host IPO and get listed on the HKEC. Xiaomi was the fastest growing brand in China during the quarter. To compete with regional bourses, Hong Kong's HKEX pushed through rules to let pre-revenue biotechnology firms and technology firms with multiple classes of stocks sell equity. There is no threat for Lei Jun who will keep his co-ownership with Lin Bin after the IPO through a special class of shares. There are two types of ordinary shares - Class A and Class B - and seven series of preferred shares - Series A through Series E2. Lei now owns 31.4 per cent of Xiaomi while Lin holds 13.3 percent.

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