Xiaomi debuted on the Hong Kong Stock Exchange today with opening and closing prices lower than expected.
Xiaomi shares were trading at HK$16.32 ($2.12) on Monday morning and closed at $16.80, both below the bottom range of their expected offering price of HK$17. The IPO raised $4.7 billion at a valuation of about $76 billion.
Earlier this year, Xiaomi’s IPO was speculated to be the world’s largest listing since 2014, raising around $10 billion at a valuation at around $100 billion. It was also reported in June that Xiaomi was planning to become the first company to issue CDRs in Mainland China, however, the plan has now been delayed.
Founded in 2010, the eight-year-old company was the fifth largest smartphone manufacturer in the world last year and the fourth largest smartphone vendor by unit sales.
While China and India are the main drivers of its fast growing business, Xiaomi also has its eyes on the U.S. market. In spite of the ongoing U.S.-China trade war, Xiaomi is developing cellphone models to be compatible with U.S. carrier networks for a launch in the U.S. next year.
A wave of other Chinese tech giants have also been reported to be considering going public next year, including the Alibaba-backed fin-tech company, Ant Financial, preparing for an IPO in Hong Kong to raise $10 billion.
Featured Image Source: Xiaomi weibo.