The lucky 56: Xiaomi IPO to make dozens of workers millionaires
The employees stake in the company may soon be worth US$1 billion to US$3 billion, depending on the stock sale. That works out to $36 million each at the midpoint
Eight years ago, before China’s Xiaomi Corp. had sold a single smartphone, 56 of the earliest employees pulled together US$11 million to invest in the startup. Rank-and-file workers dipped into savings and borrowed from parents. One receptionist tapped her dowry.
Today, they’re the “Lucky 56”. Xiaomi is one of the most successful smartphone makers in the world and it’s prepping a blockbuster initial public offering. Their stake in the company may soon be worth US$1 billion to US$3 billion, depending on the stock sale. That works out to US$36 million each at the midpoint.
The fortuitous decision began with workers like Li Weixing, an ex-Microsoft Corp. engineer who was employee No. 12. Back in 2010, staffers were working seven days a week out of a bare-bones Beijing office park to get the unknown mobile phone maker up and running. When word spread that Lei Jun and his co-founders were chipping in their own money for a venture financing round, Li and others wanted to join them.
Li, who helped create Xiaomi’s mobile operating system, had around 500,000 yuan (US$79,000) saved up. “It wasn’t enough to buy a house, so he asked if he could invest in Xiaomi instead,” CEO Lei said in a March interview at Beijing headquarters. “We said, we can’t let only Weixing invest, so we let everyone in.”
Xiaomi sets sights on global markets on cusp of biggest IPO
Some early Xiaomi employees were already wealthy, including Lei who made his first fortune leading software developer Kingsoft Corp. and investing in Chinese start-ups. But many staffers in those days had to scrape together cash to participate. Li and others preferred investing in an effort they knew rather than the uncertain stock market. Now Li stands to make US$10 million to US$20 million, depending on Xiaomi’s IPO value.