(Yicai Global) May 15 -- Chinese internet firm and handset maker Xiaomi, which is listed in Hong Kong, will repurchase up to 10 percent of its issued shares

Its board of directors has passed the corresponding resolution, the Beijing-based company said in an announcement yesterday that buoyed the shares [HKG:1810] by 2.96 percent in today's morning trading to HKD10.42 (USD1.33) at the lunch bell.   

Xiaomi now has about 17.3 billion outstanding shares, of which 1.73 billion will be repurchased at a cost of about HKD17.3 billion (USD220 million) if bought at current prices, public information shows.

Xiaomi staged an initial public offering in Hong Kong in July last year that raised about HKD24 billion at an issue price of HKD17 per share, and in which Hong Kong's richest man Li Ka-shing, Alibaba Group Holdings Jack Ma Yun, Tencent Holdings' Pony Ma and other magnates participated.

The shares fell below their IPO price on the first day of trading, however, though briefly resurging to a historical high of HKD22.2 each. They have been in a downward trajectory since mid-July and dropped to a record low of HKD9.4 in early January. 

Xiaomi took back its shares three times in mid-January, spending about HKD200 million to get its hands on about 2 million. Its stock price rebounded to a high of HKD12.7 in early March, but started to plunge again in late April, and closed at HKD10.1 per share yesterday in a three-month low.

Editor: Ben Armour