Xiaomi has decided to delay its mainland share offering until after its Hong Kong IPO and has lowered its likely valuation to USD 55-70 billion, Reuters reported. Sources with direct knowledge of the matter said the company was using this valuation in discussions with potential IPO investors. The company in March hoped to raise at least USD 10 billion from the IPO, taking its valuation to USD 80-100 billion. Recent pre-IPO research from sponsoring banks valued the group at USD 65-86 billion, Thomson Reuters said.
Xiaomi delayed its mainland offering after disagreeing with regulators over the valuation of its China depositary receipts (CDRs), sources said, casting doubt on Beijing’s efforts to bring foreign-listed Chinese tech firms back home. Xiaomi did not immediately respond to a request for comment on the valuation.
The company said it was asking regulators to postpone its application to sell CDRs, but gave no reason for the decision. “After iterative, careful research, the company has decided to implement its Hong Kong and mainland IPO in a measured way,” Xiaomi said in a post on its Weibo account. “We’ll list in Hong Kong first, before going public on the mainland through the CDR.
