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Xiaomi gets Hong Kong stock exchange approval for IPO; to raise over $10 bn

Xiaomi could also become the first firm to issue Chinese depositary receipts


Attendants are silhouetted in front of Xiaomi's logo at a venue for the launch ceremony of Xiaomi's new smart phone Mi Max in Beijing | Photo: Reuters

Xiaomi Corp. has won approval for its planned initial public offering, which would be the first listing in the city with weighted voting rights, people with knowledge of the matter said.

The smartphone maker passed its so-called listing hearing on Thursday, said the people, who asked not to be identified because the information is private. Xiaomi plans to start gauging investor demand in the next few days, one of the people said.

ALSO READ: Xiaomi to become a billionaire factory with IPO

Xiaomi is one of the most hotly anticipated Hong Kong deals in years. The company, led by serial entrepreneur Lei Jun, has been considering seeking about $10 billion from the IPO, people familiar with the matter have said. The offering could become the world’s largest first-time share sale since Alibaba Group Holding Ltd. listed in the U.S. in 2014, data compiled by Bloomberg show.

ALSO READ: Xiaomi floats $10 billion IPO, lifts lid over financials

Beijing-based Xiaomi was the first to file for a Hong Kong IPO with a weighted-voting rights structure after the city’s bourse changed rules in April. It could also become the first firm to issue Chinese depositary receipts, after it picked Co. to handle a planned mainland listing.

A representative for Xiaomi declined to comment. The Hong Kong Economic Times reported the approval earlier, citing unidentified people.

ALSO READ: Xiaomi files for world's biggest IPO since Alibaba, may raise over $10 bn

unit CLSA Ltd., Goldman Sachs Group Inc. and Morgan Stanley are joint sponsors of the Hong Kong IPO, according to a stock exchange filing last month. Credit Suisse Group AG, Deutsche Bank AG, JPMorgan Chase & Co. and six Chinese banks are also helping to arrange the share sale, people familiar with the matter have said.

First Published: Fri, June 08 2018. 11:05 IST