Xiaomi has raised HKD 24 billion (EUR 2.6 billion) in net proceeds from its initial public offering of shares, after pricing the IPO at the low end of the expected range. Despite the offering being over-subscribed, the company priced the shares at HKD 17 each, the bottom of the indicated range of HKD 17-22. The stock will start trading on 09 July in Hong Kong.
In total, Xiaomi sold 108.98 million shares to Hong Kong investors and said it received demand for 9.5 times as many shares. Another 2.398 billion shares were sold in the international offering. The global offering was increased by 10 percent compared to the initial indication due to strong demand, and it can be increased by another 15 percent if the underwriters exercise the over-allotment option.
Xiaomi also confirmed that a number of large shareholders acquired stakes in the offering. This includes a 0.21 percent stake for China Mobile and 0.21 percent for Qualcomm, as well as similar stakes for a number of investment funds. The so-called cornerstone investors are subject to a six-month lock-up on their shares.
