Xiaomi eyes Europe as $6.1B IPO kicks off
hong kong — Chinese smartphone maker Xiaomi will aggressively target European markets, using part of the proceeds from its initial public offering worth $6.1 billion in Hong Kong, the firm’s co-founder said on Saturday.
The company is offering 2.18 billion shares at HK$17-HK$22 apiece, in a bid to raise $6.1 billion, far less than the $10 billion originally expected, as an escalating trade war between China and the US dampens investor sentiment. But at a Press conference in Hong Kong on Saturday, the company’s co-founders were bullish about its prospects, signalling plans for international expansion in Europe and Southeast Asia.
“Someone asked me if Xiaomi [will] only expand in developing countries? Last year we started to enter the European market and we realised we have a lot of ‘Mi fans’ in Europe,” Lei Jun, Xiaomi’s co-founder and CEO said.
The company will invest around HK$8.3 billion from its IPO proceeds towards boosting its presence in overseas markets including Spain, Russia and Indonesia.
The firm, which mainly sells cheap but high-quality smartphones in China, has been looking to push into Europe — recently opening its first flagship store in Paris — as the home market reaches saturation point. “We are planning for the US market and will find a proper timing to enter it,” Wang Chuan, co-founder and senior vice-president of Xiaomi, said on Saturday.
“Xiaomi is very optimistic about the development of ChinaUS trade, as every economic entity is relying on each other,” Wang added. —