Chinese consumer electronics maker Xiaomi officially confirmed its public listing plans, as well as recent reports that its dual-debut strategy has been placed on hold until local regulators work out the framework it needs to issue Chinese depositary receipts in mainland China. The Beijing-based company will instead only be holding an initial public offering in Hong Kong next month, seeking to raise some $6 billion in cash from investors. While that figure is significantly smaller than the $10 billion one Xiaomi initially targeted, it still represents the world's largest tech float in almost two years. The firm will be issuing close to 2.2 billion shares priced in the range between $2.20 and $2.80.
Xiaomi's valuation also took a hit once its CDR plans were placed on hold; while the company initially considered a $100 billion target and later downgraded that figure to $80 billion, its Hong Kong debut may "only" see it valued at up to $70 billion and possibly as low as $54 billion, according to one official from Goldman Sachs, the multinational financial giant that's among the OEM's underwriters. As expected, Xiaomi is promising its valuation to skyrocket moving forward, citing its diversified operations and value-oriented business strategy as the main reasons for its optimism. One of the world's most valuable startups will start listing its shares on the Hong Kong Stock Exchange on July 9, according to its latest communication issued over the weekend.
Xiaomi co-founder and Chief Executive Officer Lei Jun was recently awarded $1.5 billion worth of stock options for his contributions to the firm and is likely to see his net worth continue growing following the company's public market debut. Xiaomi celebrated its eighth anniversary in April and is now shifting its focus to international markets in a bid to continue enjoying startup-like growth. India is presently its largest foreign market where the firm is close to overtaking Samsung as the largest local handset vendor, with some industry trackers claiming it already did so in recent months.