Xiaomi to Raise $3 Billion of Total IPO Amount in Mainland China

By June 4th, 2018 AT 7:44 PM

Xiaomi is going to be listed for one of the biggest IPOs of the recent time, which is being valued at $10 billion. A person aware of the matter said to Reuters that the Chinese smartphone giant plans to raise 30% of the total IP amount in China, while the rest it will raise in Hong Kong. Previously, the company was to raise all $10 billion in Hong Kong only through the Initial Public Offering (IPO). As per the latest update, Xiaomi is setting its vision on becoming the first overseas-listing Chinese tech firms to seek a secondary listing in China for so-called Chinese depositary receipts (CDR), the people said. This CDR is the reason which will contribute to the 30% of fundraising in China for the company.


Three people tipped that Xiaomi is looking towards obtaining clearance from Hong Kong stock exchange for its listing in the Asian financial hub later this month. The goal of the company is to list in Hong Kong and mainland China in early or mid-July. The smartphone giant had filed the prospectus for IPO last month in Hong Kong.

When questioned about the same, the company refused to make any comments. Also, the tipsters chose to remain anonymous, since the details of the deal still remain confidential.

China’s draft rules on the issue of depositary receipts are under open consultation until June 3. Also, according to three people Xiaomi has planned to list the company on the same day in both Hong Kong and China.

The CDR issuance by Xiaomi will allow Chinese companies domiciled and listed overseas to avail their shares in the local market. It is also noteworthy that Xiaomi is not the only company who is opting for this method, some other companies include U.S.-listed Alibaba Group Holding Ltd and JD.com.

Citic Securities, which is the firm heading Xiaomi’s CDR issue did not respond to any comment. The joint sponsors for the listing in Hong Kong are CLSA, Goldman Sachs and Morgan Stanley.

Read more on:

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

Notify of
Inline Feedbacks
View all comments

Recent Posts

Vodafone Idea Ahead of Airtel, Jio in Upload Speeds: TRAI

Reliance Jio on Wednesday continued to maintain the leadership that it has held in terms of 4G speeds, with 20.7...

OnePlus Promises Faster and Stable Updates Post Merger With Oppo

Post years and years of speculating that the reason for OnePlus settling was the Oppofication of the company, it seems...

TRAI Extends Channel Selector Service by Adding Web Version

The Telecom Regulatory Authority of India or TRAI on Wednesday launched what can be said to be an extended version...