This morning, Xiaomi Group was officially listed on the Hong Kong Stock Exchange. The company is quite excited about the achievement but its stock price started at HK$16.60 ($2.12) which is 2.35% lower than the listing price of HK$17 ($2.17). However, at the close of work for today, Xiaomi’s share price rose to HK$16.8 ($2.14) which is 1.18% below the listing price.
However, Xiaomi’s CEO, Lei Jun, stated that though its stock price took a short-term plunge, this is not entirely important because the long-term price will be better. Xiaomi was able to raise about HK$23.97 billion ($3.05 billion) and its IPO is about $54 billion which is over 30% lower than the initial speculations. It appears that investors are not so keen on putting their cash in Xiaomi’s stock. The company has a 5% profit policy which might not be in the best interest of investors.
Lei Jun said. “A lot of people don’t understand Xiaomi. We have a lot of innovations in hardware, and e-commerce or Internet business…Over the past 8 years, we have more than 100 products,”