China’s Xiaomi Files for Mega IPO in Hong Kong

Giant Chinese smart phone maker Xiaomi has filed documents that put it on course for the world’s biggest IPO this year. The company will list in Hong Kong and is expected to raise $10 billion, aiming for a valuation of about $100 billion.

Xiaomi is the world’s fourth largest smartphone manufacturer and has expanded into home appliances, software and entertainment.

“We are more than a hardware company. We are an innovation-driven Internet company,” chairman Lei Jun said in an open letter. He described the company as having a “triathlon” of overlapping business areas in hardware, new retail and Internet services. He made special mention of mobile payments, e-commerce, social media and short form videos.

The documents filed with the Hong Kong Stock Exchange are at an early stage of readiness and do not disclose the number of shares Xiaomi proposes to sell, nor the amount of new capital it plans to raise. The finance industry valuation estimates are a leap from the $60 billion discussed only a few months ago.

Subsequent updated regulatory filings, after the company has met with institutional investors and gets closer to finalizing a date for the sale, will provide more detail. The issue is sponsored by CLSA, Goldman Sachs and Morgan Stanley.

The decision to list in Hong Kong rather than a mainland Chinese or U.S. stock market reflects the former British colony’s strong position as a financial center that straddles East and West. Hong Kong is easily accessed by mainland investors, and also benefits from the territory’s common law and independent judiciary. In finance circles, Hong Kong has been tipped to be the world’s leading IPO market this year, following a listings rule change specially made for tech companies that allows them to list shares with restricted voting rights. STX Entertainment, a Hollywood company with multiple backers from Greater China, has also recently filed a draft prospectus in Hong Kong.

Xiaomi’s documents show a company that is still loss-making, but that has rebounded significantly from a downturn in 2016 when it suffered from over-expansion. In 2017, it enjoyed revenues of $18.7 billion (RMB119 billion) and made operating profits of $1.92 billion (RMB12.2 billion). After other costs, Xiaomi incurred net losses of $6.58 billion (RMB41.8 billion).

More Biz

  • The dark Manhatten skyline, seen from

    StubHub Refunds $500,000 to Customers Shut Out by New York Blackout

    Saturday’s blackout in New York had an outsized effect on the city’s nightlife, with Madison Square Garden and the entire Broadway district seeing multiple shows cancelled due to the the power outage. As a result, StubHub has refunded more than $500,000 worth of tickets for cancelled events. According to a statement from the company, the StubHub [...]

  • Weapons Cache

    D.A. Files 64 Charges in Bel-Air Weapons Stockpile Case

    The L.A. County District Attorney’s office has filed 64 counts against Girard Saenz, the man who allegedly kept a stockpile of more than 1,000 weapons at a Bel-Air home linked to the Getty family. Saenz is accused of illegal possession of assault weapons, transferring handguns without a dealer license, possession of short-barreled shotguns, and possession [...]

  • 9-1-1: Angela Bassett in the series

    Fox Sees Primetime, Sports Ad Gains As TV Upfront Wraps

    Fox Corporation is the latest to benefit from stronger-than-expected trends in TV ad spending, as the company notched strong gains in advertising commitments for its next cycle of programming – its first since selling off a large chunk of its media assets to Walt Disney. Ad demand was stronger than many executives anticipated, according to [...]

  • BMI Promotes David Levin to Senior

    BMI Promotes David Levin to Senior VP of Digital Licensing

    BMI today announced that David Levin has been promoted to Senior Vice President of Licensing, effective immediately. In his newly expanded role, Levin is responsible for all of BMI’s domestic licensing and revenue generation, encompassing radio, television, digital media, cable, satellite and general licensing.  Levin, who will oversee teams in New York and Nashville, reports [...]

  • Warner Music Group Logo

    Warner Music Acquires Musical Theater Indie First Night Records

    Warner Music Group has acquired First Night Record, an independent record label for West End and Broadway musical theatre cast recordings. The company will be overseen by WMG’s Arts Music Division, led by President Kevin Gore. First Night co-founder John Craig will join the Arts Music team under a multi-year consulting agreement to identify and record musical theatre productions in [...]

  • Woodstock 50 to Hold Open House

    Woodstock 50 to Hold Open House for Local Residents Before Permit Review Tuesday

    If nothing else, the producers of Woodstock 50 are persistent. After two permit applications to hold the troubled festival at the Vernon Downs racetrack in Upstate New York were rejected by the town of Vernon codes office, the producers and venue owner Jeffrey Gural today invited the local community “to embrace the Festival’s spirit of [...]

  • ILM Star Wars The Force Awakens

    ILM to Open Latest Effects Facility in Sydney, Australia

    Sydney, Australia, is to be home to Industrial Light & Magic’s fifth production hub. The Disney-owned special effects company currently has facilities in San Francisco, Vancouver, London and Singapore. The decision to open the Sydney outpost was announced Monday local time by executive creative director and head of ILM Rob Bredow, ILM executive Luke Hetherington, [...]

More From Our Brands

Access exclusive content