Xiaomi to attract $6.12 billion in Hong Kong IPO

Beijing. June 25. Silkroadnews - Xiaomi, a Beijing-based smartphone company in Beijing, announced its intention to raise 48 billion Hong Kong dollars (about $6.12 billion) in the initial public offering (IPO) in Hong Kong next month.
Xiaomi will offer about 2.18 billion shares at a price of 17 to 22 Hong Kong dollars each.
It is expected that the offer will start on Monday and close on Thursday, while stock trades are expected to begin on July 9.
“We are an innovation-driven internet company committed to the principle of 'amazing products at honest pricing'. Within seven years of our founding, our annual revenue exceeded 100 billion yuan (15.38 billion U.S. dollars), achieving a growth rate that many traditional companies are unable to match,” the agency quoted saying by Lei Jun, executive director, founder, chairman and chief executive officer of Xiaomi.
Xiaomi has tremendous growth potential as a company that can offer hardware, e-commerce and Internet services, Lei also noted.
Xiaomi will also become the first issuer after Hong Kong introduced new rules on dual-class shares or the weighted voting rights (WVR) structure.
According to the WVR structure, Xiaomi’s share capital will include shares of Class A and Class B. Each Class A share gives the holder 10 votes, and each class B share gives the holder one vote.
The company said its proceeds will go to hardware development, global expansion and Internet ecosystem for connected devices, known as the Internet of Things (IoT).