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Xiaomi was valued at $46 billion in a 2014 funding round completed before its sales stagnated.
More recently it has seen expectations of its value pick up following strong results this year.
Its float could be the world's "largest technology IPO" next year, according to one of the people.
"It is huge," said another source, adding that a valuation of $100 billion would "not be a crazy number".
The world's most valuable startup for a brief period in 2014 was worth about $55 billion at the end of June, according to one person close to the company.
But two other people familiar with the company's discussions said it should be worth much more based on its expected earnings.
Xiaomi did not immediately respond to a request for comment.
At the time it pulled back from several overseas markets including Brazil and Indonesia, but this year it has launched and re-launched sales in dozens of countries such as Indonesia, Vietnam, Russia, the United Arab Emirates and Ukraine.
It has overtaken Apple Inc to become China's fourth-largest smartphone vendor by sales, driven in part by a focus on offline stores, according to research firm Canalys.
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The smartphone group's listing plan comes on the heels of a slew of successful Chinese tech and fintech IPOs in recent months.
Already a strong pipeline is building for 2018, with public floats expected from Meituan-Dianping, an online local services group valued at $30 billion, and Lufax, a wealth management platform worth $18.5 billion as of its last funding round.
Xiaomi's founder, Lei Jun, had said the company would not go public until 2025, but a bull run in the stock market and its promising financial numbers have sped up the IPO plan, according to the people.