Going the route of its other tech peers in China, Xiaomi chooses to file for an IPO in the Hong Kong Stock Exchange after much deliberation on its choice of bourse. The company in a press statement said it will be floating a total of 2,179,585,000 shares representing approximately 95% and 5% of the total number of the Offer Shares. Most Chinese tech company’s look to accelerate scaling with the help of foreign funds or public offering.

The offer price is currently expected to be between HK$17 and HK$22 per share raising funds of between RM20-30 billion and valuing Xiaomi at around RM200 billion. Xiaomi started its operation in Shenzen with a startup capital of US$1 billion from investors and released its first mobile phone in 2011. As of this year the company became the 4th largest smartphone manufacturer and now covers a wide variety of consumer goods as part of  its portfolio.

Funds from the excercise will be used for research and development as well as other efforts to develop its core in-house products, including smartphones, smart TVs, laptops, AI speakers and smart routers.
Approximately 30% for investments to expand and strengthen the Company’s ecosystem primarily in the
fields of IoT and lifestyle products and mobile internet services, including AI. While the rest will be for global expansion and working capital.