Xiaomi has filed for a listing on the Hong Kong stock market, a move that is likely to the biggest initial public offering of the year. There is no telling how much the company hopes to raise from the offering, but sources expect it to be around $10 billion (~RM39 million).
The announcement comes as Xiaomi revealed its sales figures of 114.62 billion yuan (~RM70 billion) in 2017, which is an increase of 68% from the previous year. However, the company also suffered a loss of 43.9 billion yuan (~RM23.5 billion).
While the loss may seem like a lot, analysts estimate that the IPO would value the firm at a little less than US$100 billion (~RM394 billion). Xiaomi said in a disclosure to Hong Kong Exchanges that it intended to use the capital raised as investments into the Xiaomi ecosystem in “certain product areas, global expansion, and for R&D.”
Xiaomi’s listing in Hong Kong looks to be a win for the region’s new stock exchange rules. Where were recently changed in order to attract more technology companies to the Special Administrative Region, as it tries to compete with much larger exchanges in New York and Shanghai.