Xiaomi Announces Hong Kong IPO to Raise up to $1.5 billion
Chinese tech giant, Xiaomi isn’t stepping down for anyone. The company has finally declared its aim to raise about $6 billion through an IPO in the Hong Kong stock exchange. The announcement was made by the company during the weekend at a press conference. The company’s seven directors were present during the press conference as well.
How Feasible is $10 billion IPO from Xiaomi?
Although, Xiaomi initially wanted to raise up to $10 billion through the initial public offering. However, that dream was long gone when the company suspended its CDR offering in China. Nonetheless, Xiaomi’s founder and CEO, Lei Jun, stressed that the company has grown over the years and has huge potential for more growth in the future. He is also confident that the company will be selling up to 2.2 billion shares to global investors during the IPO.
The Initial public offering will take place today the 25th of June and retail for 17 to 22 Hong Kong dollars. That’s about $2.20 to $2.80 per share. We also have to put in mind that Xiaomi is more than a gadget making company. As they have businesses in hardware, e-commerce and internet services as well. James Paradise, who is the Asia-Pacific president of the company revealed that the company is worth about $54 billion to $70 billion US dollars.
The company is trying everything possible to reach the $100 billion Mark, and the $6 billion the company will raise today might go a long way. This may also be because the company has never fully revealed how much it was valued, we just depend on Forbes for that.
Xiaomi’s co-founder, Lin Bin also released a statement that the company has awarded stock worth about $1.5 billion to CEO Lei Jun, for being a worthy leader of the company. Lei Jun has devoted the past eight years in building Xiaomi from scratch. The trading on Hong Kong stock exchange should start from July 9. Xiaomi promises to use the money made from the IPO to increase its research and development and for global expansion.