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‘Media buzzes around Xiaomi IPO rumours’
Posted on Monday, 04 December 2017 12:59
Recent reports suggest Xiaomi, one of the world’s largest manufacturers of smartphones, could hold an initial public offering (IPO) as early as next year.
The Information first indicated the privately-owned Chinese developer of Android-based operating systems and other consumer electronic devices is in discussions with bankers about a potential debut.
It is believed advisors are putting forward Hong Kong as a likely destination, though the US tech industry website added this does not necessarily rule out a US listing.
While local news site sina.com.cn has since said the technology giant has denied these reports, sources told Bloomberg an IPO could give Xiaomi a valuation of USD 50.00 billion, at least.
However, these people, who declined to be named as the subject is private, cautioned the underwriting hopefuls are not as optimistic.
While the banks are each attempting to win the mandate by building up expectations for the listing, they are not sure it would value the entire company at USD 50.00 billion.
Bloomberg added these advisors have even bigger doubts it would fetch the USD 100.00 billion that some upper-echelon executives have in mind.
According to The Information, industry insiders indicated Xiaomi’s IPO could hit the capital market as early as the second half of 2018 to give a valuation of USD 69.00 billion.
When contacted by Bloomberg, a spokeswoman said the company does not comment on IPO matters, while sina.com.cn noted the manufacturer, as many other times before, has denied the rumour.
The Chinese news site added Xiaomi said the valuations given in the media continually fluctuates; when performance is good the estimates rise and when things are not going as well then they fall.
If the reports are true, then plans to go public next year are a drastic U-turn on a strategy laid out at a conference last year by chief executive Lei Jun.
Lei said he does not expect to list the smartphone maker until about 2025 as the current business model is complicated and it needs time to properly win over consumers.
© Zephus Ltd