Xiaomi, the world’s most famous Chinese appliance manufacturer, is conducting active bilateral negotiations with investment banks. As a reminder, it was considered one of the most expensive start-ups in the world several years ago. The subject of talks is agreement on the potential initial public offering of shares (IPO). The Chinese are counting on capitalization of at least $ 50 billion. The financial community was informed about the negotiations by the agency Bloomberg, which had referred to the insiders.
The American agency has learned that IPO can happen in the coming year. Banks, in turn, offer Hong Kong as the most promising site for initial placement, relying on the number and capacity to pay of potential shareholders.
The first reports that Xiaomi was preparing IPO for the first 3 months of 2018, appeared on Friday on The Information, an American thematic site on the high-tech industry.
On Saturday, Xiaomi through the Chinese news site sina.com.cn denied the speculation about the initial placement. Bloomberg’s material was released two days later, but it has not received a response from the company yet.
Banks are not completely sure that Xiaomi will be able to achieve such large capitalization. The amount of 50 billion arose on the basis of an estimate of three years ago. Then the experts agreed on a figure of $ 46 billion.
Unfortunately, in 2014, after the announcement of that assessment, the company began to lose ground in the Chinese market of smartphones to such competitors as Huawei Technologies Co. and Oppo.
However, in recent months, Xiaomi has been trying to make up for lost time through the expansion of the product range. Moreover, the company is actively investing in its own retail stores and promoting in India, thereby partially reorienting the sales markets.
If the company becomes public, Xiaomi can attract at least $ 5 billion, which is extremely necessary to finance further successful development.
“In India, we created a miracle. Only three years have passed, and we are already number one, “Xiaomi CEO Lei Jun said at a conference in Wuzheng, without commenting on the upcoming IPO.
According to independent analytical companies, Xiaomi literally and figuratively treads on the toes of Samsung Electronics in the Indian market and has a good chance of reaching the first place in sales of smartphones. India has been recognized as the fastest growing mobile phone market in the world.
The excitement around Chinese smartphone manufacturers will certainly affect the quotes of shares of high-tech companies. Investors expect a new strong player in this difficult segment, since the moment of the first public offering of shares is a great time to multiply the investments.
The material was prepared with the participation of Darina Belova,
a leading analyst of the brokerage company CT Trade