Xiaomi Debuts On Stock Exchange, Becomes Third Most Valuable Smartphone Maker

Chinese smartphone maker, Xiaomi Corporation has announced its Initial Public Offering (IPO) listing on the Hong Kong Stock Exchange yesterday i.e on the 9th of July 2018. The company is delighted to have being able to achieve a valuation of USD 54.3 Billion, which puts Xiaomi among the top three IPOs in the technology segment throughout the world. The IPO price has been listed at HKD 17. Xiaomi’s CEO Mr. Lei Jun, has taken the time to specially thank initial investors such as Li Ka-Shing, Jack Ma and Pony Ma among others for their contribution towards developing this company and making it possible to achieve such a large valuation.

Xiaomi’s Current Performance
The company has delivered more than 866 times its initial VC funding, which was USD 5 million and it expects to emulate this performance for investors in the capital market as well. The company aims to better its current financial performance that includes Annual Revenues of RMB 114.6 Billion in 2017. Xiaomi’s CEO also expects to continue its meteoric growth that has seen annual revenues shoot up by 67.5% Year on Year. The company also noted that it has crossed the RMB 100 Billion mark, in terms of annual revenues, in just seven years. Xiaomi also becomes the first to setup a weighted voting rights structure with dual class shares.

Xiaomi’s Standing in the Smartphone Domain
The CEO also added that the company has grown to become the fourth largest smartphone marker in the world apart from disrupting several other industry including mobile accessories, IoT, electric scooters and Lifestyle products. The company has entered 74 countries and has become industry leaders in China in just under three years. Now Xiaomi has gone on to become the industry leaders in the Indian market as well. Mr. Lei Jun also added that the company plans to expand its internet services business apart from just concentrating on the smartphone segment.

Xiaomi’s IPO:
The Initial Public Offering allows Xiaomi Corp to now expand to different territories and regions including North America, which largely remains an untapped segment. Mr. Lei Jun reiterates that the IPO wasn’t the ultimate goal for Xiaomi and this merely facilitates in helping achieving their goals and vision that includes increasing Revenue from Global Market sales to more than 50% from the current 34% of total revenue. Xiaomi has gone a long way in rebranding the image of a “Chinese” mobile phone that is often deemed inferior in quality and has been consistently delivering world-class products competing with the likes of Samsung and Apple.

July 10, 2018