Chinese smartphone giant Xiaomi's listing falls flat

Chinese smartphone giant Xiaomi's listing falls flat

Investor demand already appears to be flagging for Xiaomi Corp's (小米) upcoming US$4.7 billion debut, with some institutional investors seeing bids for the Chinese smartphone maker's shares as low as HK$15.20 on Thursday, with no offers in gray-market trading, people familiar with the matter said.

According to Lei Jun, its founder and CEO, Xiaomi is a company that "can do hardware, e-commerce and Internet".

Xiaomi's shares were trading at 16.32 Hong Kong dollars (about $2.08) Monday morning, compared with their offering price of HK$17.

"At this critical moment in Sino-US trade relations, the global capital markets are in constant flux", he said. It later expanded into computers, TVs and home appliances.

However, Xiaomi was still able to secure $4.7 billion United States dollars from institutional investors.

Shares in Xiaomi, the Chinese mobile phone maker, slid nearly 6% at the start of trading in Hong Kong.

And Jackson Wong, at Huarong International Securities, warned there could be repercussions for Hong Kong's IPO outlook, saying a tepid start for Xiaomi would suggest a weak appetite for new listings in the city. Of the 27 billionaires to surface in Asia this year, about a third did so through IPOs in Hong Kong and Shenzhen, the Bloomberg Billionaires Index showed.

Xiaomi's disappointing offering touted as the biggest tech listing since 2014 and it's unclear how it will affect other high-flying technology firms Hong Kong hopes to line up. It is also the first under the city's new rules permitting dual-class shares, common among USA tech firms, in an attempt to attract tech sector floats.

China Tower, the world's largest mobile tower operator, has won approval for an IPO that could raise up to $10 billion. Ping An Healthcare & Technology's May debut flopped after the retail tranche was 600 times oversubscribed.

"We are an internet firm", Xiaomi's founder and chief executive Lei Jun told the listing ceremony at the Hong Kong stock exchange. The main stock market in London opened higher. But Xiaomi, with such tight prices, is especially vulnerable to entry into force of tariffs because several of its suppliers are Americans, starting with ir processors, who buy m from Qualcomm.

Chinese e-commerce site Alibaba raised $25bn in NY in 2014.

Potential investors also struggled to view the company as the internet play it considers itself to be, rather than as a smartphone maker - the lower-margin business that now generates most of its profits, sources said.

Xiaomi is the biggest smartphone seller in India and is making inroads in Europe.

Related:

  • We left everything out there, says England manager Southgate

    We left everything out there, says England manager Southgate

    Jesse Lingard and Marcus Rashford quietly restarted and managed to get into Croatia's box before the referee called them back. First of all I'm so proud of this team and staff for giving everything we could over a long period of time together.
    Sharif, Maryam face arrest on arrival

    Sharif, Maryam face arrest on arrival

    A local court gave 10 years of rigorous imprisonment to 68-year-old Sharif in the Avenfield apartment case last week. Security departments have chose to seal the airport at the arrival of Nawaz and his daughter.
    Pippa Middleton misses the mark in baby blue for Prince Louis' christening

    Pippa Middleton misses the mark in baby blue for Prince Louis' christening

    Traditionally, members of the royal family are supposed to refrain from showing any political views and are not allowed to vote. Her husband, Prince Harry also noticed his wife Meghan Markle smiling at the little child.
  • England face Ben Stokes decision ahead of T20I decider

    England face Ben Stokes decision ahead of T20I decider

    MS Dhoni: 3/10 The former team India skipper did not contribute much with the bat scoring just 33 runs in three matches. Buttler and Roy scored 73/0 in six overs with both in-form batters smacking 10 fours and four sixes in the process.
    London awaits Trump's visit, braces for protests

    London awaits Trump's visit, braces for protests

    The declaration was unusual given the topic being discussed was whether the President would support a Hard Brexit for the UK. A giant baby Trump blimp is set to fly over London during the United States president's visit to the UK.
    'This was a setup' Stormy Daniels's lawyer after arrest in Ohio

    'This was a setup' Stormy Daniels's lawyer after arrest in Ohio

    The 39-year-old was booked on a charge that outlaws touching between patrons and performers at sexually-oriented businesses. A person who answered the phone at Sirens, the strip club where Daniels performed, declined to comment.
  • UK Government On Verge Of Collapse Days Before Trump's Visit

    UK Government On Verge Of Collapse Days Before Trump's Visit

    A "responsible government" has to prepare for a variety of outcomes in the negotiations, "including a no deal". May's Conservative party, and foreign minister Boris Johnson joined Mr.
    Trump continues to criticise European allies ahead of NATO summit

    Trump continues to criticise European allies ahead of NATO summit

    President Trump is already making waves, just hours after arriving in Europe. "After all, you don't have that many". Given what we know about Trump and Putin's warm and fuzzy relationship, a lot of people would think.
    Thai Boys Wave to the World in First Video Since Their Rescue

    Thai Boys Wave to the World in First Video Since Their Rescue

    Journalists celebrate after a news conference near Tham Luang cave complex in the northern province of Chiang Rai , Thailand . Members of the Wild Boars soccer team, ranging in age from 11 to 16, entered the cave with their coach during dry weather.
  • Warframe Announced for Nintendo Switch

    Warframe Announced for Nintendo Switch

    The game features hundreds of weapons and thousands of customization options to keep things fresh and unique-looking. In fact, the game has more than 38-million registered players, according to the Digital Extremes news release.
    Hey Look, Apple Just Announced New MacBook Pros

    Hey Look, Apple Just Announced New MacBook Pros

    In April, the 13-inch MacBook Pros without touch bars had come under scrutiny, with some users reporting battery-related issues. Fans of Apple's laptops have also been expecting updates to the more basic MacBook , as well as the lightweight MacBook Air.
    Tropical Storm Chris continues to spin off North Carolina coast

    Tropical Storm Chris continues to spin off North Carolina coast

    On the forecast track, the center of Chris will pass over or near extreme southeastern Newfoundland Thursday evening. The storm was expected to strengthen through Wednesday and then lose force from Thursday, the center said.

Comments

Other news