Xiaomi prepares IPO and target market capitalization of 50 billion USD
The Chinese smartphone maker Xiaomi, which was once the world’s highest-rated startup, has been negotiating with investment banks for a potential IPO, seeking a market capitalization of at least 50 billion USD. A Beijing-based company is considering selling shares next year and banks have said Hong Kong Stock Exchange is the most likely destination.
But the problem is in the assessment. The investment bankers have doubts whether Xiaomi can be valued so high. And the managers in the company have been targeting even more – 100 billion USD.
The Chinese company sought funding in 2014 at a 46 billion USD market value. In recent months, Xiaomi has gained momentum, although it has had a lot of difficulty with its competitors from Huawei and Oppo. The company invested aggressively in opening new stores in India and is already on the verge of surpassing Samsung sales in the fastest-growing smartphone market.
Xiaomi was founded in 2010 and became popular with its internet marketing campaigns surrounding traditional stores. In 2014 it even managed to become the most expensive startup.
But last year, their glory began to shrink as supply diminished due to sharp competition in the local market. The company is already the fifth in China.