(Yicai Global) April 16 -- Leading Chinese smartphone maker Xiaomi Inc. may apply to go public in Hong Kong as early as next month for as much as USD70 billion, almost a third less than it initially sought.
Xiaomi could become the first company with weighted voting rights to trade in Hong Kong, Hong Kong Economic Times reported today. The Beijing-based firm will consider floating shares on the mainland via China Depositary Receipts after going public.
Xiaomi has made several pre-initial public offering share sales which value the firm at between USD65 billion and USD70 billion, the report added, saying such a valuation would make Xiaomi the 12th-biggest public company in Hong Kong by market cap.
Founder and Chief Executive Lei Jun vowed at an annual conference in February to retake the top spot in China’s smartphone market within the next two and a half years, after Xiaomi’s shipments slid in 2016.
The company began making IPO preparations late last year and was reported to be choosing banks to handle a USD100 billion listing in January. It has been waiting on the outcome of a second inquiry by the Hong Kong Stock Exchange into weighted voting rights arrangements, which was completed in late March. Its results are due to be announced next week.
The HKSE is lowering stock listing requirements to entice innovative companies to go public in the special administrative region and securities authorities on the mainland have unveiled the CDR program to incentivize tech unicorns. The China Securities Regulatory Commission has not yet released full details, so Xiaomi is pushing ahead with its Hong Kong listing first, the report added.
Xiaomi commanded a 6.3-percent share of the global smartphone market last year, in terms of shipments. It distributed 92.4 million handsets to rank third among Chinese makers, behind Huawei Technologies Co. and Guangdong Oppo Mobile Telecommunications Corp., according to figures from International Data Corp.