Xiaomi to raise $6.12 bln in HK IPO

Xiaomi, a Beijing-based smartphone maker, on Saturday announced its plan to raise 48 billion HK dollars (about $6.12 billion) in an initial public offering (IPO) in Hong Kong next month.

Xiaomi will offer about 2.18 billion shares priced at between 17 ($2.17) and 22 HK dollars each.

The offering is expected to start next Monday and close next Thursday, while trading of the shares is expected to start on July 9.

“We are an innovation-driven internet company committed to the principle of ‘amazing products at honest pricing,’” said Lei Jun, executive director, founder, chairman and chief executive officer of the smartphone maker.

“Within seven years of our founding, our annual revenue exceeded 100 billion yuan, achieving a growth rate that many traditional companies are unable to match.”

In the future, Xiaomi has huge potential for growth as a very rare company that can handle hardware, e-commerce and internet services, Lei said.

Xiaomi will also be the first issuer after Hong Kong introduced new rules on dual-class shares or the weighted voting rights (WVR) structure.

The WVR structure will enable the company to benefit from the continuing vision and leadership of the WVR beneficiaries, who will control the company with a view to its long-term prospects and strategy.