Xiaomi pushes ahead with Hong Kong IPO amid stand-off with China regulator
The smartphone maker has shelved a plan to issue CDRs in mainland China, after the regulator demanded answers to 84 questions including why it positions itself as an internet company
Chinese smartphone maker Xiaomi aims to raise as much as US$6.1 billion from its Hong Kong shares listing next month after shelving a plan to sell Chinese depositary receipts (CDRs) in mainland China, according to people familiar with the matter.
Xiaomi plans to issue around 2.18 billion shares in its Hong Kong stock market debut, scheduled for July 9, at an indicative price range of HK$17 to HK$22 per share, collecting up to HK$48 billion (US$6.1 billion), the sources said.
That would make it Hong Kong’s largest IPO since Postal Savings Bank of China’s US$7.4 billion float in September 2016, and also the world’s biggest tech listing since Alibaba’s US$25 billion IPO in 2014.
The company will start taking institutional investors’ orders on Thursday.
On Tuesday, Xiaomi announced it would postpone its original plan to issue CDRs in the domestic market, and instead go public in Hong Kong first. The company said it will reconsider the CDR plan at a later stage.
The CDR system, which is being piloted in China, allows domestic investors to buy shares in overseas-listed firms.