Chinese smartphone maker Xiaomi files for an initial public offering in Hong Kong on Thursday after it filed to go public on the Hong Kong Stock Exchange.
The much-speculated IPO process has kicked off officially; However, Xiaomi did not disclose the amount it’s looking to raise or its projected valuation, as its first draft of filing does not include proposed financial details of its listing. Reports say that the company seeks to raise $10 billion, and could be conferred at a high of $100 billion.
It could be the largest IPO ever since Alibaba in New York in 2014. The listing could make Xiaomi China’s third largest technology company based on market cap.
Xiaomi also revealed an extreme growth that will give the leading smartphone creators a good fight in the global competition.
In 2017, Xiaomi sold with over 91.4 million smartphones, and it reported a revenue and a gross profit of $18 billion and $2.3 billion respectively. It is currently the world’s fourth phone manufacturer behind Samsung, Apple, and Huawei.
Furthermore, Strategy Analytics stated that Xiaomi doubled its phone shipments in the first quarter of 2018 to 28.3 million. It placed fourth after Samsung’s 78.2 million, Apple’s 52.2 million, and Huawei’s 39.3 million.
Xiaomi focusing its resources in India might be the possible reason for the huge success. Earlier this year, the company dethrones Samsung as the top-selling smartphone company in the Indian market.
The company has no word yet for possible US expansion, but there are likely plans for a late 2018 or 2019 launch.
Xiaomi founder Lei Jun, along with co-founder Lin Bin, said,“We are building an open global ecosystem, and not a walled garden. I believe we can create a paradigm shift of efficiency in the business world and use technology to improve the lives of many.”
The two will continue to control the post-IPO company through a special class of shares. Lei assured to develop Xiaomi into more than a hardware company. In addition, he promised to cap its hardware profit margins at 5 percent — returning any excess to its users.
Aside from smartphones, Xiaomi also develops internet-connected home devices, scooters, air purifiers, and rice cookers. It also sells online content, entertainment, and financial services.
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