Xiaomi is looking to raise up to $6.1 billion in Hong Kong IPO

After postponing Shanghai IPO, Xiaomi today confirmed that it will list in Hong Kong first offering a total of 2,179,585,000 Shares (subject to the Over-allotment Option), comprising initially 108,980,000 Hong Kong Offer Shares (subject to adjustment) and 2,070,605,000 International Offer Shares (subject to adjustment and the Over-allotment Option). The offer price range is from HK$17 to HK$22 per share, so the company could raise anywhere between US$ 4.72 billion and US$ 6.1 billion. Even though this is less than $10 billion, which Xiaomi was reportedly hoping to achieve a few weeks ago, this would still make it the world's biggest initial public offering (IPO) in nearly two years. Xiaomi said that it intends to use the proceeds from the offering for the following purposes: Approximately 30% for research and development as well as other efforts to develop the Company’s core in-house products, including smartphones, smart TVs, laptops, AI speakers and smart routers; Approximately 30% for investments to expand and strengthen the Company’s ecosystem primarily in the fields of IoT and lifestyle products and mobile internet services, including AI; Approximately 30% for global expansion, including but not limited to hiring local teams across business functions and investing in its retail partners; and Approximately 10% for working capital ...

from Fone Arena https://ift.tt/2K4qmAG