Chinese smartphone maker Xiaomi has set a price range for its IPO in Hong Kong and lined up seven key investors to participate in the offering, according to a term sheet seen by Reuters. The shares will be sold at a price of HKD 17-22 each, and seven investors including Qualcomm and China Mobile will buy a combined 10 percent stake in the group during the IPO.
Other cornerstone investors include Chinese express delivery company SF Express, state-backed investment firm CICFH Entertainment and state-run conglomerate China Merchants Group. The company will open the share subscription to institutional investors on 21 June.
The IPO values Xiaomi at USD 54.3 billion, or USD 70.3 billion if the 15 percent over-allotment option is exercised. If the greenshoe is exercised, Xiaomi’s free float will be 9.99 percent of its enlarged share capital.
The company is selling in total about 2.18 billion shares in the IPO, 65 percent of which are primary, according to the term sheet. The selling shareholders are early investor Morningside, a Chinese venture capital firm, and Xiaomi managers Wong Kong Kat, Liu De, Heng Feng and Li Wanqiang.
