Chinese smartphone maker Xiaomi Corp. priced a $4.7 billion initial public offering at the bottom of its target range, people familiar with the matter said, pulling off one of 2018’s largest IPOs despite investor skepticism about its growth prospects.
On Thursday, the eight-year-old company priced its offering at 17 Hong Kong dollars ($2.17) per share, the people said, after last week setting a target range of HK$17 to HK$22. Xiaomi shares will begin trading in Hong Kong on July 9.
Beijing-based Xiaomi hoped to raise up to $6.1 billion from its IPO before trading started. The pricing gives the company a market valuation of around $54 billion. That is a sharp comedown from expectations earlier this year of a $100 billion valuation and is also less the $65 billion to $85 billion that several brokerage analysts had estimated Xiaomi to be worth.
Check out: Xiaomi needs to destroy another industry, not just conquer phones, to be worth its IPO price tag[1]
The company encountered difficulties on the road to the IPO. Xiaomi’s offering kicked off at a tumultuous time for Chinese stocks, which have weakened due to concerns about China’s escalating trade conflict with the U.S.
An expanded version of this report appears on WSJ.com[2]
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References
- ^ Xiaomi needs to destroy another industry, not just conquer phones, to be worth its IPO price tag (www.marketwatch.com)
- ^ An expanded version of this report appears on WSJ.com (www.wsj.com)
- ^ Elon Musk races to exit Tesla’s “production hell” (www.wsj.com)
- ^ The airline fee that exists for no apparent reason (www.wsj.com)