Xiaomi has finally filed for an IPO in Hong Kong. Until now, Xiaomi couldn’t file for IPO in Hong Kong since the rules stated that shares of different classes cannot be listed on the exchange. Hong Kong has changed the rule to accommodate shares of different classes and Xiaomi seems to be the first large company to take advantage of the same.
Xiaomi hasn’t specified how much money it wants to raise during the IPO but the sources peg the value at somewhere around $10 Billion. This also means that the Xiaomi’s valuation is likely to touch the $100 Billion mark, a mention-worthy feat indeed. In fact, this will be the biggest IPO in the world since Alibaba went public in 2014.
Xiaomi had a bad year in 2016 after which they picked pace with rejuvenated efforts across the globe. In India, the company went loggerheads with Samsung and has also emerged as the top-selling smartphone brand. Xiaomi, for the first time, has revealed its fiscal details to the public. The company has posted a net loss of 43.9 billion yuan in 2017 while the revenue increased by 67.5 percent last year.
That being said, Xiaomi is still bullish on the emerging markets and they entered Spain last year. They have also been in talks with the U.S carriers to bring Xiaomi to the American market. Xiaomi is also consolidating their position when it comes to several startups that are mushrooming under their startup ecosystem. Xiaomi CEO, Cofounder lauded the policy change in Hong Kong and called it “a great policy innovation.”
Earlier to this, the Hong Kong Exchanges and Clearing Ltd didn’t offer weighted-voting rights. A special voting structure that allowed the founders and the promoters control the company even with minority stakes. In fact, this was the very reason why Alibaba chose New York exchange for their IPO debut in 2014. 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.