Xiaomi has updated its IPO prospectus listing in Hong Kong and it is now set to raise about HK$48 billion ($6.1 billion). According to The Economic Times, Xiaomi has set an initial offering price range and plans to sell 2.18 billion shares, of which 65% are new shares and 35% are old shares. The price of each offer will be between HK$17 ($2.17) and HK$22 ($2.80).
At present, Xiaomi has already introduced a number of cornerstone investors, including Qualcomm, China Merchants, China Mobile, Shunfeng, CDB Private Equity, and Poly Group. It is said that the minimum investment threshold for Xiaomi’s cornerstone investors is $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.
From the previous Xiaomi CDR’s data, its adjusted annual net profit for 2017 was 3.95 billion yuan ($607 million)and its price-earnings ratio was significantly higher than Apple and Samsung’s valuations. It is reported that Xiaomi’s listing will become the largest enterprise IPO in the past two years. In September 2016, the China Postal Savings Bank was listed in Hong Kong and raised $7.6 billion. Xiaomi plans to accept orders from institutional investors before June 28, and it will be publicly traded in Hong Kong on July 9. CLSA, Goldman Sachs and Morgan Stanley will be the joint lead underwriters of Xiaomi’s Hong Kong IPO.