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‘Xiaomi submits CDR application’
Posted on Friday, 08 June 2018 10:13
China’s securities regulator is said to be reviewing an application by Xiaomi to become one of the first offshore-incorporated, homegrown technology unicorns to take advantage of the pilot Chinese depository receipt (CDR) programme while obtaining a listing in Hong Kong.
At this point, the smartphone manufacturer is the first to have submitted paperwork to list via this new mechanism, and has also received approval to be a trail blazer for initial public offerings with weighted-voting rights structure on the special administration region’s bourse.
People with knowledge of the matter told Bloomberg Xiaomi, with help from joint sponsors CLSA, Goldman Sachs and Morgan Stanley, is expected to begin gauging investor demand for Hong Kong share sale in the next few days.
Separately, the South China Morning Post reported the company is likely to gain admission to the board on 10th July, just a day after the CDRs are expected to become available to domestic investors.
Xiaomi uses a core Internet of Things platform to link smartphones and intelligent hardware; as at the end of March 2018 it had a global user base with 190.00 million monthly active users, of which more than 1.40 million had more than five of the group’s connected products.
In terms of core in-house items, the company is focused on designing and developing a range of smartphones, laptops, smart televisions, artificial intelligent speakers and smart routers, among other things, according to its website.
Xiaomi has established an ecosystem of more than 210 companies through investment and management, among which more than 90 are focused on the development of smart hardware and lifestyle products, as of 31st March 2018.
The group generated revenue of CNY 114.62 billion in the financial year ended 31st December 2017 (FY 2017: CNY 68.43 billion; FY 2016: CNY 66.81 billion).
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