Huami Goes Public in US: Initial Offer of $11 Raises $110M

Huami became listed on the New York Stock Exchange (NYSE) under the stock code HMI on February 8, reported. Bloomberg said Huami’s initial offering price would be $11 and it would raise $110 million.

According to previous disclosures, Huami planned to issue 10 million American depositary receipts during its IPO, and the offering price would be about $10 to $12. In addition to the overallotment that underwriters can execute, the maximum value of the IPO would be $138 million.

Huami will use a dual-class share structure, as is written in an additional document for the prospectus submitted to the Securities and Exchange Commission. The American depositary receipts issued in the IPO are equivalent to four A-class common shares. Each A share has one right to vote. In addition, Huami also owns B common stock, which equals 10 voting rights. When the IPO is completed, the total equity held by existing shareholders will be converted into 197,736,467 B shares. Assuming the underwriters do not carry out the overallotment, the shares mentioned above will account for 83.2 percent of the total, and 98.0 percent of the voting rights.

Huami also said in additional document that according to the agreement signed between Huami and shareholders, before the IPO completed, Huami would issue 12,064,825 shares of class B common stock to preferred shareholders.

Huami was founded in January 2014 and is a Xiaomi eco-chain enterprise. Its sales exceeded 1.5 billion yuan in 2016, according to Huami’s website. As of September 30, 2017, the total shipments of Xiaomi bracelets exceeded 40 million. The main products of Huami include the Xiaomi-branded smart bracelet and smart scale, and AMAZFIT-branded smart bracelet and smart watch. As of September 30, 2017, the Xiaomi Sports App and Sports Health Cloud Platform developed by Huami offered Internet services to 49.6 million users.

Huami’s supplemental documents also showed that People Better Limited holds 35,861,112 shares of Huami, accounting for 19.3 percent of the total. The proportion fell to 15.1 percent after the IPO, with 17.8 percent voting rights. People Better Limited is a wholly-owned subsidiary of Fast Pace Limited, and the latter is Xiaomi’s wholly-owned subsidiary registered in the British Virgin Islands.

This article originally appeared in Tencent Tech and was translated by Pandaily.