Xiaomi, a Chinese Start-Up, Picks Hong Kong for a Major IPO

Xiaomi, a Chinese Start-Up, Picks Hong Kong for a Major IPO

The Chinese smartphone giant has filed to go public on the Hong Kong Stock Exchange, the South China Morning Post reports.

Furthermore, Bloomberg says that Xiaomi may see a valuation "as high as $100 billion".

Chinese handset maker Xiaomi's Chinese IPO could be the largest listing globally since the $25-billion debut of Alibaba Group Holding Ltd (NYSE: BABA) in 2014.

The Chinese company handed in its documents on Thursday to list its shares on the stock exchange in Hong Kong. The stock exchange in Hong Kong, which competes with bourses in NY and mainland China, had recently brought in new rules to lure tech firms. The company did end up with losses of 43.9 billion yuan (about $6.9 billion) in 2017 as compared to a 491.6 million yuan ($77.2 million) profit the year prior.

The announcement comes as Xiaomi revealed its sales figures of 114.62 billion yuan (~RM70 billion) in 2017, which is an increase of 68% from the previous year.

The documents Xiaomi filed Thursday shed some light on its finances, showing revenue soared almost 70% previous year to around 115 billion yuan ($18 billion).

"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 global business, Wang Xiang, told CNBC in February.

The company is now at the fourth position in the smartphone market globally, behind Samsung, Apple and Huawei.

Announcing the same, the consumer electronic company gave investors the first detailed look at its financial position ahead of the much talked IPO. "Our steadfast determination and execution will eventually help us to realize our dreams", Jun said.

Xiaomi started being a maker of cheap smartphones that were sometimes criticized for aping Apple's i-phone.

Xiaomi plans to spend most of the IPO proceeds on three areas: research and development, overseas expansion, and investments, according to its filing. Xiaomi was the fastest growing brand in China during the quarter.

Xiaomi is one of the biggest phone companies in China, and one of the largest smartphone companies in the world.

Xiaomi will be implementing dual-class shares.

Dual-class listings allow founders to own premium shares that have voting rights that hold up to 10 times more power than that of ordinary shares.

It has enlisted Goldman Sachs, CSLA and Morgan Stanley for its proposed listing.

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