Xiaomi picks HK for world’s biggest IPO

XIAOMI Corp has applied to sell shares in Hong Kong in what is expected to be the biggest initial public offering globally this year.

Although Xiaomi didn’t provide financial terms in its IPO application to the Hong Kong Exchanges and Clearing, bankers and industry insiders said the company is seeking to raise US$10 billion through the IPO which values the eight-year Beijingbased company at US$100 billion.

That would make it the biggest new listing in the world since Alibaba’s US$25billion debut in 2014 in New York.

Its value will surpass those of Baidu and JD.com to become the third-biggest Chinese technology firm behind Tencent and Alibaba, they said.

In 2017, Xiaomi generated a revenue of 114.6 billion yuan (US$18.2 billion) including one-third from overseas regions, a growth of 67 percent year on year. The company reported a net loss of 43.89 billion yuan last year.

Excluding one-time charges, it said its profit was 5.36 billion yuan, according to the filing, which is the first time the company has reported financial details.

It was accompanied by a bullish-sounding letter from the company’s founder and chairman Lei Jun saying Xiaomi intends to become a “part of the lives of billions of people globally in the future.”

Lei holds a 31.4 percent stake in the company, which will probably make him one of the richest men in China.

Xiaomi’s business now covers smartphones, mobile application stores and intelligent devices from routers and artificial intelligence speakers to air purifiers and wristbands. Despite its wide offering, 80 percent of business still comes from smartphone sales.

Xiaomi also said it will cooperate with CK Hutchison Holdings, owned by billionaire Li Ka-shing, to establish a global strategic alliance yesterday.