Xiaomi IPO: Four Co-Founders Sold 117,888,000 Shares


The Hong Kong Stock Exchange has disclosed Xiaomi’s prospectus after its hearing. According to the latest information, Xiaomi has begun to accept subscriptions and the company is expected to grab a Hong Kong IPO of up to $6.1 billion (about HK$48 billion). The legal value of Xiaomi’s statutory capital is $675,000, which consists of 70 billion A shares (worth $175,000) and 200 billion B shares ($500,000).

According to current reports, Xiaomi will officially be listed on Hong Kong Stock Exchange by July 9 and it will issue 2,179,585,000 shares at a price range of between H17 ($2.17) and HK$22 ($2.80) per share. According to the data, Xiaomi’s 65% of the shares issued were new shares and 35% were old shares, which means that the original shareholders sold a fraction of their shares. Co-founders Huang Jiangji, Li Wanqiang, Liu De, and Hong Feng sold a total of 117,888,000 shares, which represents 5% of the benchmark issue shares. According to the above-mentioned price per share, the four co-founders will cash out about HK$ 2 billion (approx $255 million)

At present, Xiaomi has attracted some cornerstone investors, including Qualcomm, China Merchants, China Mobile, Shunfeng, CDB Private Equity, and Poly Group. These cornerstone investors are expected to invest a minimum of $50 million (approximately HK$392 million), with a six-month lock-in period, but some cornerstone investors have special terms with a lock-up period of up to two years. Among them, China Mobile and Qualcomm will invest $100 million each.

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