Finally, after so much news about it, Xiaomi has debuted in the Hong Kong IPO market. However, not everything went as expected. The Chinese company has had a less than impressive start in the Hong Kong stock market after its stock drops on the first day of operations, the drop was about 2.9%. In this way, they are currently below 2% of the list price of their initial public offering. And they have only been priced at HK $16.60 (USD $2.12) instead of the planned list price of $17 (USD $2.17). In comparison, the Hang Seng Index (HSI) of the Hong Kong Stock Exchange grew around 1.5% today.
Xiaomi is listed in the Hang Seng index with the code 1810. In addition, it is classified in the sector of telecommunications companies as the fifth largest manufacturer of smartphones in the world.
Lei Jun opinions about Xiaomi debut at the Hong Kong IPO
As expected, for an event of such magnitude, the company celebrated a deserved act on the Hong Kong Stock Exchange. In it, Lei Jun, CEO of Xiaomi, commented on the vicissitudes that the tensions in the commercial relations between the US and China can suppose. He did not deny what happened and accepted that the IPO of the company has been made at a critical time for the world market since the conflict means that there is a constant change. Textually, he gave his opinion with the following sentence:
Although macroeconomic conditions are far from ideal, we believe that a large company can still face the challenge and differentiate itself.
What is the result of this surprising debut?
So, the Xiaomi’s bad start could be because of the growing tensions between China and the US. Shares in Hong Kong and Shanghai have been successful with the index of the old market falling by more than 10% compared to early June. Definitely, the situation was not really favorable for an initial public offering of a huge company like Xiaomi. However, we hope that you can cope with the current inconveniences.
We have to remember that previously it was expected that the initial public offering of the company would be valued at around $54 billion, much lower than previous expectations. In fact, some time ago, there were rumors that the company had targeted the biggest stock market debut of recent years, a valuation of between $100 – $80 billion. The current numbers are really quite low.
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