Chinese smartphone giant Xiaomi is expected to apply for listing on the Hong Kong Stock Exchange on 2 May, according to a report from Hong Kong Economic Times.
According to the report Xiaomi could be listed by as early as the end of June or early July under the new dual class share-scheme just recently introduced by the Hong Kong bourse to enhance its appeal to overseas tech giants.
Xiaomi’s IPO is expected to raise at least USD$10 billion, becoming the biggest issue of new shares since the listing of life insurer AIA Group back in October 2010.
Beijing-based Xiaomi was founded in 2010, and posted rapid growth following the release of its first smartphone product in August 2011, becoming the largest company in the domestic sector by 2014.
The company emerged as one of China’s billion dollar unicorns following its second round of financing in 2011, while by the fifth round of financing in 2014 Xiaomi was valued at $45 billion.
Xiaomi CEO Lei Jun put the value of his company at $200 billion in November 2017, a figure which was subsequently affirmed by investment banks.
While rumours have long circulated that Xiaomi could go public, analysts are concerned that a recent scandal involving the use of toxic materials in smartphone cases could cause the company’s valuations to take a hit.
A recent investigation by the Shenzhen Consumer Council has named Xiaomi as one of several leading mobile phone brands, including Apple, Samsung and Huawai, that use cases containing an excessive volume of harmful toxic substances.