Chinese handset maker Xiaomi's Chinese IPO could be the largest listing globally since the $25-billion debut of Alibaba Group Holding Ltd BABA in 2014.
What Happened
Xiaomi filed its intention to go public wtih the Hong Kong stock exchange Thursday. The company is reportedly seeking to raise $10 billion, which puts its valuation at about $100 billion.
In the filing document, the company said it reported revenues of 114.6 billion yuan in 2017, nearly double its 2015 revenue. For 2017, the company posted an adjusted non-IFRS loss of 5.4 billion yuan.
Xiamoi said it was India's largest handset vendor in the fourth quarter of 2017, according to IDC data, and said it's a top-five vendor in 15 markets.
Why It's Important
Hong Kong recently relaxed rules for listings in order to attract IPOs, with the most important allowance being a provision for company founders to retain control even after going public.
Xiaomi expects to use the net proceeds to fund R&D, investment in IoT and other areas designed to boost its software platform and global expansion.
What's Next
Xiaomi could launch the IPO at the end of June, the Channel News Asia said, citing people familiar with the matter.
The company could also offer the first Chinese depository receipts after its Hong Kong listing, according to Bloomberg.
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Photo by Vernon Chan via Wikimedia.
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