Xiaomi IPO: Xiaomi Falls Then Rises in Hong Kong Debut

Chinese Smartphone Maker Xiaomi Falls in Hong Kong Trading Debut

Chinese Smartphone Maker Xiaomi Falls in Hong Kong Trading Debut

Xiaomi priced its IPO at HK$17 per share, the bottom of the range it offered, raising $4.72 billion in the world's biggest technology float in four years.

Xiaomi opened at HK$16.60, 2.4% lower than its IPO price of HK$17.

Xiaomi's listing comes at a delicate time for Hong Kong's stock market, with the benchmark Hang Seng index falling 2.7 per cent last week and 5.8 per cent this year as investors fret over escalating trade tensions between the United States and China.

The IPO pricing valued the firm, which also makes internet-connected home appliances and gadgets, at about US$54 billion, nearly half its original US$100 billion ambition earlier this year.

The stock that was made available to retail investors drew orders represented 9.5 times the shares offered, the company said Friday.

By contrast, China Literature Ltd, the e-book arm of Chinese gaming and social media firm Tencent Holdings, late a year ago raised US$1.1 billion for its Hong Kong IPO amid heavy demand, with the retail portion being 625 times oversubscribed.

"We are an internet firm".

Xiaomi's Founder, Chairman and CEO Lei Jun (right) and Chew Shou Zi, senior vice president and chief financial officer gesture during the listing ceremony at the Hong Kong Stock Exchange in Hong Kong on July 9, 2018. It is also the first under the city's new rules permitting dual-class shares, common among USA tech firms, in an attempt to attract tech sector floats. These include a $4 billion deal from online food delivery-to-ticketing services platform Meituan Dianping and an up to $10 billion IPO from China Tower, the world's largest mobile tower operator. That is far short of the oversubscription rates for other tech IPOs in Hong Kong. However, its listing timing will depend somewhat on Xiaomi's stock performance, sources have told Reuters. Ping An Healthcare and Technology Co Ltd dropped below its IPO price on the second day of trading in May. "It's open to everybody.If you don't like the price, you can stay away".

Chinese e-commerce site Alibaba raised $25bn in NY in 2014.

It is now the biggest smartphone vendor in India and is pushing into European markets including Spain and Russian Federation, though it has lost share in China recently to lower-cost rivals.

Notícias recomendadas

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.