(Yicai Global) May 31 -- Smartphone giant Xiaomi is set to become the first company to take part in the China Depository Receipt pilot scheme with plans for an offering on the Shanghai Stock Exchange on July 16.

The Beijing-based firm has postponed its upcoming Hong Kong initial public offering to July 17 to make way for the CDR issue, WeChat-based news blog IPO Zao Zhidao cited sources at the China Securities Regulatory Commission and an investment bank as saying. The firm will set prices for both the CDR offering and listing on July 9.

The CDR scheme allows foreign-listed companies to issue shares in China, and marks an ambitious attempt to rejuvenate the mainland market by bringing home overseas-listed tech giants and encouraging new listings. The alternative listing approach skirts around legal barriers, such as minimum profit requirements and restrictions on dual-class shares.

The CDRs are expected to be priced based on Xiaomi's projected net profit for 2019, which is forecast to be between USD2.3 billion and USD2.5 billion, information from the investment bank suggests. Assuming a price-earnings ratio of 35, conservative estimates value the company at around USD80 billion after the offerings.

Editor: William Clegg