Xiaomi Secures Seven Cornerstone Investors for Its Hong Kong IPO
Liu Jia
/SOURCE : Yicai
Xiaomi Secures Seven Cornerstone Investors for Its Hong Kong IPO

(Yicai Global) June 21 -- China's smartphone maker Xiaomi has secured seven cornerstone investors for its upcoming Hong Kong share issuance, Yicai Global learned.

Those cornerstone investors include Qualcomm, China Mobile, SF Holding, CICFH Entertainment, China National Equipment Manufacturing Industry Investment Fund, China Poly Group, and China Merchants Group for its listing on Hong Kong's stock market.

Of the seven cornerstone investors, China Mobile and Qualcomm each invested USD100 million. Qualcomm had participated in a USD90 million series B round of funding in 2011 and has been working with Xiaomi on the research and development of chips.

China Mobile, one of Xiaomi's channel operators, once had product development partnership with Xiaomi, while SF and Xiaomi have cooperation prospects in the field of trade logistics.

Xiaomi is expected to hold a global press conference on June 23 to announce further details, sources said. The company's issue price will range between HKD17 (USD2.17) and HKD22, with 2.18 billion shares to be issued, sources suggested. If the issued share capital accounts for 10 percent of its pre-listed share capital and that the offer price limit is HKD22, the company would value at USD61 billion.

Xiaomi's updated Hong Kong listing prospectus today shows that the firm's authorized share capital has a total face value of USD675,000, consisting of 70 billion A shares (valued at USD175,000) and 200 billion B shares (valued at USD500,000).

Financial Results

In addition, Xiaomi revealed its first quarter results in the updated prospectus. Xiaomi's revenue in the first quarter of this year reached CNY34.4 billion, a year-on-year growth of about 86 percent. Operating profit was CNY3.3 billion, up 72 percent annually. The net loss was about CNY7 billion and the adjusted net income was nearly CNY1.7 billion.

Smart phones were still the largest source of its total revenue, accounting for over 67 percent, while the Internet of Things and consumer products made up 22.4 percent of its revenue, which stays at the same level as last year. Xiaomi's internet service revenue was CNY3.2 billion, dropping to 9.4 percent in this quarter from nearly 11 percent in the corresponding period of last year.

In terms of international business, revenue from Xiaomi's overseas market hit CNY12.5 billion in the first quarter, a year-on-year jump of about 191 percent.

Editor: Mevlut Katik

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Keywords: Xiaomi , IPO , Cornerstone Investors , Initial Public Offering , HKEX , Share Issuance