The big news for Xiaomi is about to come since its inception in 2011, the Chinese smartphone manufacturer is in a process of listing the company in Hong Kong Stock Exchange and the CDR A shares.
According to the Chinese news source, the company has already submitted all due documents and prospectus a few days ago, the process has now entered into the final stages.
On June, 15 China Securities Regulatory Commission (CSRC) announced that the committee will hold its 88th meeting this year in order to review the Xiaomi Croup’s application for public issuance of depository receipts on Tuesday, June 19.
The director of issuing department Guo Xudong said that the speed of Xiaomi’s listing has set the new record as the company has to wait only for 12 days before CDR to consider its application.
However, Xiaomi has announced officially that the company will focus first on Hong Kong listing and then it will consider CDR application.
To avoid uncertainty or minimize the effect of it in Chinese capital market the CDR becomes an innovative measure for Xiaomi, the sources said. However, one of the key features in the application is ‘valuation’ which has not been finalized yet.
According to Mary Mickle’s report, which lists the top 20 global internet companies of 2018, Xiaomi is placed at number 14 in the world with an estimated valuation of $75 billion, while, Goldman Sachs analysts believe that Xiaomi is valued between $70 billion to $86 billion. Morgan Stanley has stated the current fair value of Xiaomi could reach $84.8 billion.
Xiaomi has also reported the first-quarter loss of $1.09 billion just before the initial public offering (IPO).