Xiaomi eyes IPO early next year
Mainland industry giant may launch offering early next year after securing US$1 billion loan
Xiaomi, the world's third-largest smartphone supplier after Apple and Samsung, is aiming for an initial public offering as early as next year, said two people close to the company.
A spokesman for Xiaomi did not respond to requests for comment.
The potential share offering comes after the Beijing-based technology start-up said it would spend US$1 billion to expand its own television content. It has hired Chen Tong, a former executive at Sina, to revamp its internet television business.
The company also last month closed a US$1 billion loan deal with a syndicate of 29 banks.
"Xiaomi is one of the large Chinese technology companies that would tap the IPO market next year," said one of the sources. "Hong Kong investors seem to be more receptive of hardware than software firms, making the city the likely IPO destination for Xiaomi."
Sources said the four-year-old company, which is valued at US$50 billion, had yet to decide when and where to launch the initial public offering but the current market appetite for technology firms with a clear growth outlook, like Alibaba Group Holding, would be an incentive to do it soon.