Qualcomm, China Mobile Among 7 Cornerstone Investors For Xiaomi IPO

In what'due south expected to be one of the biggest tech IPOs globally since Alibaba listed on the NYSE back in 2014, Chinese smartphone maker Xiaomi is planning to raise at to the lowest degree $six.one billion from an initial public offering this week in Hong Kong, with each share existence priced at a range of HK$17 to HK$22.

The company is said to have lined up $548 one thousand thousand from seven cornerstone investors including US chipmaker Qualcomm, Chinese express delivery visitor SF Express, domestic telco China Mobile, state-backed investment firm CICFH Entertainment and state-run conglomerate Communist china Merchants Group.

According to Reuters, the aforementioned companies will be allotted 10 percent of the shares beingness offered, while the rest will be available for institutional investors. As part of its IPO, Xiaomi is selling about 2.xviii billion shares, 65 pct of which are main.

Indian business organisation tycoon Ratan Tata is said to be 1 of the investors in the company, having bought a 0.0024 pct stake with 49,583 shares for about $1 one thousand thousand in 2015. Tata'south investment is at present said to exist worth close to $2.1 million —a twofold jump in four years.

Xiaomi officially filed for an IPO on the Hong Kong stock exchange in May after months of rumors and speculations surrounding the process. Reports back and so had suggested that the company might be looking to heighten $x billion at a valuation of $100 billion, which would have made information technology China's third largest technology company based on marketplace cap.

Recent reports, however, have been more sobering, with the company expected to rake in betwixt $6.1 billion to $vii.ix billion in the IPO, valuing the tech giant betwixt $54.3 billion to $lxx.3 billion. The desperate reduction in the visitor'due south valuation is believed to be because of its determination to withhold its share offering in the mainland until later its Hong Kong IPO.

Xiaomi's IPO comes in the wake of the company's astounding growth over the past twelvemonth, especially in overseas markets like India, where its Redmi series smartphones have virtually go the default go-to devices in the mid-range. The visitor recently launched its Mi 8 flagship at an issue in China, and is expected to add new devices to its portfolio later this month.

Source: https://beebom.com/qualcomm-chine-mobile-investors-xiaomi-ipo/

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