Is Xiaomi partner Huami Technology’s IPO a toe in the water for smartphone maker?

Huami Technology, a major smartwatch maker for Chinese smartphone maker Xiaomi, has filed for an initial public offering in the United States, as Xiaomi itself prepares for a potentially huge flotation, in an indication that the smartphone maker and its suppliers are ready to tap capital markets and build their brands overseas.

Huami, backed by Xiaomi and its founder Lei Jun, aims to raise US$150 million on the Nasdaq, according to a prospectus released last week. The size of the IPO is yet to be revealed.

“Huami’s [IPO] is not a big offering. But it just shows how much they [Xiaomi and related companies] want to be out there quickly,” said Ken Wong, an Asian equity portfolio strategist at Eastspring Investments. “An overseas IPO could have a great impact on building brand awareness and the potential to help better engage stakeholders.”

Xiaomi is preparing its own flotation, which could be the biggest technology listing since Facebook’s in 2014.

Its global sales jumped by 102 per cent year-on-year in the third quarter last year to 27.6 million units, helped by aggressive expansion in markets such as India and a sped up drive into bricks-and-mortar stores, according to figures from the International Data Corporation.

Analysts said a successful IPO will help Xiaomi’s global ambitions.