Daily Trends Now
Daily Trends Now


China's Xiaomi submits HK filing, with big IPO expected

China's Xiaomi submits HK filing, with big IPO expected

Chinese smartphone maker Xiaomi filed documents today with Hong Kong's stock exchange operator for an initial public offering that could be the world's biggest share sale in years.

The listing is expected to raise about USD 10 billion via the public offering, giving Beijing-based Xiaomi a market value of between USD 80 billion and USD 100 billion, people familiar with the plans told Reuters. While some investors opposed the move, Xiaomi's decision, four years after Alibaba Group Holding Ltd. chose NY, signals a new phase for the city in its ambitions to rival the USA market.

The company's financials showed 2017 revenue of RMB 114.62 billion ($18 billion), a 67.5% increase from the previous year. It posted a net loss of 43.9 billion yuan ($6.9 Billion) in 2017, reversing from a profit of 491.6 million yuan a year earlier.

The company said 28 percent of its revenue came from global operations in 2017, compared to 13.4 percent in 2016 and 6.1 percent in 2015.

Still, CEO Lei Jun emphasized in his open letter that following the declining smartphone sales in 2016, his company went through a transition and managed to rebound in 2017 - going from 55.4 million devices back up to 91.4 million, with a stronger focus on developing markets like India and Indonesia. He personally took charge of the supply chain and ramped up investments in dozens of businesses that made everything from fitness monitors, luggage, water purifiers, rice cookers and personal scooters.




It's a big win for Hong Kong Exchanges & Clearing Ltd., whose officials spent years pushing to scrap a ban on weighted-voting rights, which give founders and executives control even with minority ownership.

While Xiaomi continued to expand its product portfolio to include more smart home devices and lifestyle products, it had also been working hard on expanding its physical presence around the world.

The tech firm is also expected to issue Chinese depository receipts (CDRs) after it goes public. The exclusive tie-ups with online stores held Xiaomi back from reaching many less tech-savvy customers in China. They have also been in talks with the U.S carriers to bring Xiaomi to the American market. It sold investors on a promise that it was not just a smartphone maker, but that it would use phones as a mechanism to sell services and ads to customers.

Xiaomi is a lot more than a smartphone company.

follow

editors' picks

May 01, 2018
Here comes another sunny week — Portland weather Sunday
Thursday , there is a 60 percent chance of showers, mainly after 1 p.m., with a high near 79, the weather service said. South winds between 10 to 20 miles per hour will gust as high as 30 miles per hour .

May 01, 2018
Real Madrid vs Bayern Munich
Bayern's DNA is that we always score goals , always have many chances, and we want to have that tomorrow at the Bernabeu too. The winger and his Bayern team-mates fly to Madrid on Monday vowing to upset the odds.

April 28, 2018
Anthony Joshua vs Deontay Wilder: Will it happen?
When is it? - I cant answer that question at the moment - but the amount is of interest. "It was $50m against 50 percent". We're trying to make the biggest fight of this generation - that's what this is.

April 27, 2018
People think this rural Spanish woman is Donald Trump's doppelganger
Antelo has since been dubbed the "Donald Trump of the Costa da Morte", according to the original report in La Voz de Galicia . In fact, she has turned so famous that people have began pressing her for comment on United States policy and global issues.

April 27, 2018
Nintendo President Retires as Revenue Doubles
Bloomberg reports that Furukawa said he hopes to balance Nintendo's traditions of originality and flexibility. Now as a member of management with Super Mario's creator Shigeru Miyamoto, I have a lot of respect for him.

April 26, 2018
Jusuf Nurkic Wants To Re-Sign With The Portland Trail Blazers
And when Davis wasn't devastating the Blazers , Jrue Holiday was giving the Blazers fits with explosive drives or pull-up jumpers. For all of the criticisms, negativity and flat out irrational hate the New Orleans Pelicans seemed to conquer it all.

April 26, 2018
Prince George, Princess Charlotte Share A Sweet Moment While Visiting Third Sibling
Prince George guided his little sister into the Lindo Wing by putting his hand on her shoulder as they walked down the corridor. Unlike Diana, who spent two nights in the hospital before Harry's public debut, Kate left just seven hours after she gave birth.

April 25, 2018
OKC Thunder appear clueless v Utah Jazz in National Basketball Association playoffs
Pictured above is Westbrook guarded by Joe Ingles during game four of the Thunder's series against the Jazz. So much for that, because the Jazz and their strong defense seems good enough to take on anyone.

April 25, 2018
Get into my car ... Amazon begins delivery to vehicles in US
The service is available only in the same 37 USA cities where Amazon already offers in-home Key deliveries, according to Amazon . There's no installation cost, unlike the Amazon Key home smart lock and camera necessary for in-home delivery, which costs $220.

April 24, 2018
Macron Says He Has Proof Of Syria 'Chemical Attack'
Stoltenberg said in a statement that Syria's use of chemical weapons was "a clear breach of global norms and agreements". Moscow, which offers military support to the Syrian regime, has warned of a possible Russian response to a USA attack.