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Xiaomi just filed for the world's biggest IPO since 2014

Xiaomi just filed for the world's biggest IPO since 2014

Chinese tech company, Xiaomi has recently filed for an initial public offering in Hong Kong.

The city, overtaken by Shanghai a year ago for the first time in the global IPO stakes, was anxious to reclaim its crown to sustain jobs in the financial industry and maintain revenue from stock listings. People familiar with the matter told Bloomberg that the offering is expected to be worth at least Dollars 10 billion, making it the biggest since Alibaba's debut in 2014.

The company is ranked fourth based on global smartphone shipments, according to analyst firm IDC, and it is one of the few OEMs to buck slowing sales in China.

Last year, Xiaomi's internet services business brought in about 10 billion yuan ($1.5 billion) in revenue.

The surge in shipments during the first quarter was helped by Xiamoi's expansion into India, which was a grand slam for the company and allowed Xiaomi to almost double its market share even when the Chinese smartphone market remained sluggish at best.

Xiaomi posted a 43.9 billion RMB ($6.9 billion) loss in 2017 on account of issuing preferred shares to investors (54 billion RMB) but the growth story is healthy. Excluding the charges, adjust net profit jumped to CNY 5.4 billion from CNY 1.9 billion.

First-quarter shipments more than doubled to 27 million units, giving Xiaomi 7.5 per cent share of the global market, according to Counterpoint Research data.

Xiaomi's main business is phones, but it also makes a range of other internet-connected devices, including laptops and even smart rice cookers. But that's still a fraction of the 80 billion yuan ($12.5 billion) it made from smartphone sales.

Under the new rules, founders and executives are allowed weighted voting rights common in the United States.

Xiaomi also said it has sold over 100 million connected devices, including smartwatches, air purifiers and wearable devices, worldwide. Each Class A share will entitle the holder to exercise 10 votes, while each Class B share will give the holder one vote. Lei Jun, Co-founder and CEO, said CDRs was "an excellent idea" and a "great policy innovation". Xiaomi did not disclose any details about the IPO, only saying that the IPO will take place in Hong Kong.

In particular, the city attracted 16.1 per cent more visitors from Mainland China but the number of visitors from Hong Kong and Taiwan dropped 24.1 per cent and 19.5 per cent, respectively.

Bloomberg reported that Xiaomi has picked China's Citic Securities to handle its issuance of Chinese depositary receipts (CDR), which is most likely to come after its Hong Kong IPO.

CLSA, Morgan Stanley and Goldman Sachs Group Inc are sponsoring Xiaomi's IPO.



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