Xiaomi Rakes in $4.7 Billion in Hong Kong IPO
Jun. 29, 2018Chinese phone maker Xiaomi is finally gearing up to go public and has raised close to $4.7 billion (HK$37 billion) in its much-awaited Hong Kong IPO. It has priced the shares at the lower-end of the marketed offer range,according to Bloomberg, but that’s lackluster when compared to the company’s fundraising ambitions.
Xiaomi had opened its IPO for Hong Kong investorsearlier this week, offering a whopping 2.18 billion shares in the HK$17 to HK$22 per share price range.
The company has, however,picked the $HK17 lower-end of the price range for the listing, which values Xiaomi at around $54 billion, which isroughly halfthan what it was initially gunning for with its IPO. It was speculated that Xiaomi may be raising money at a $100 billion valuation but that didn’t pan out.
Bloomberg has added that billionaire George Soros and Chinese investment firm Hillhouse Capital have invested in this IPO. But, they’re not the only ones. A report from theSCMPfurther makes this IPO a lot more exciting asthree of China’s tycoons, namely Li Ka-shing ofCK Hutchison Holdings, Alibaba’s Jack Ma, and Tencent founder Pony Ma Huateng – have also invested in Xiaomiin their own capacity.
And then, there are theseven cornerstone investorsincluding China Mobile, Qualcomm, and other, who will have to lock up the shares for 6 months before deciding to sell them off.
Xiaomi’s listing on the main board of the Hong Kong stock exchange is scheduled for July 9, which would be a test of the sensitive city’s stock market. The Hang Seng index has already tumbled more than 6.5% this month and 4.8% in total this year. So, the question now is – how will Xiaomi’s listing fare under such market conditions?
