"Financial" reporter Chen Xiao Xiao Liu to Qin / Wen Xie Li Rong / editor
Millet IPO concern resumed rumors March 1 investment community reports that millet IPO may finalize the A + H shares of the double line by the "Financial" survey found that millet landing A shares is unlikely, and if Millet eventually chose to offshore companies as the main market, Qualcomm, India Tata Group and other overseas agencies will be the beneficiaries.
Millet will be listed on the A-shares and Hong Kong stocks rumors, millet said no comment.
(Map source network)
Like BAT, millet is a VIE-based company comprised of offshore holding companies, Hong Kong companies and domestic entities. VIE refers to Variable Interest Entities. If Chinese companies wish to list overseas and meet Regulatory requirements must be based on the VIE structure, which is made up of domestic entities and offshore companies that overseas investors can take over by buying shares in offshore holding companies.
The outside world generally believes that Lei Jun holds 77.8% of the millet technology for the domestic entity companies, the remaining three holders of millet technology are also from the founding team, including Li Wanqiang hold 10.12%, Hong Feng holds 10.07%, Liu Dezhan 2.01%.
In addition to the above individual shareholders, there are institutional shareholders Xiaomi, all shareholders of the equity structure is reflected in the offshore holding company Xiaomi Corp., rather than millet technology.
Caijing learned from an internal source at Xiaomi shareholders that Xiaomi Corp., an offshoring company of Xiaomi, is registered in the Cayman Islands and ultimately controls Xiaomi Technology Co., Ltd. through its VIE structure.
Meanwhile, the offshore company holds 100% of the equity interest in XiaomiH.K. Limited, which controls the actual entities in Xiaomi through several home-subsidiary agreements.
Millet Hong Kong's role is more like a financial platform, overseas institutional investors are investing through the structure of its built VIE.Up to now, millet has experienced five rounds of financing:
A round of 41 million US dollars financing, investors IDG, Shun, Chen Hing and so on;
B won $ 90 million from IDG, Qualcomm, Temasek and Qiming.
Round C attracted US $ 216 million investments in Russian funds DST / Yuri Milner (China) and Temasek;
D round by the Russian fund DST / Yuri Milner (China) investment, the amount was not disclosed;
E round of 1.1 billion US dollars investment, investors include the Singapore government investment, Magnolia, Yunfeng and so on.
An expert on VIE told Caijing that Xiaomi's financing route is that the founding team controlled the shares of offshore companies through BVI companies and then diluted the shares to investors so as to obtain the U.S. dollar. To domestic entities.
The experts believe that if the millet to be listed on the A-shares, it is necessary to cut all these links, or buy back the shares of these overseas investors, or by way of substitution, the cost will be great.
Another A-share analyst told Caijing that unless backdoor listing like the 360, at least two years will be required to be listed according to the current A-share listing requirements. According to previous rumors, the most likely listing will still be in Hong Kong.
The VIE expert on the "financial" analysis, if the Hong Kong IPO, Hong Kong companies or offshore companies listed are likely to eventually look at all aspects of Xiaomi considerations; main business individual shareholders (individual technology millet), must Offshore companies will be held directly or indirectly, to protect the rights and interests outside.
Although the ownership structure of offshore companies is not known at present, it can be seen from the history of financing that there is no shortage of heavyweight foreign investments that have helped strategically the development of millet.
Chip giant Qualcomm not only to provide financial support, but also has been an important supply chain partner of millet .In 2015, Qualcomm and Xiaomi reached a patent cooperation agreement, the same year, former Qualcomm senior vice president and Greater China president Wang Xiang joined Xiaomi Any senior vice president.
Qualcomm blessing to avoid millet millet a lot of patent prosecution, and succeeded Hugo Bala in charge of international business Wang Xiang, with the background of Qualcomm, Xiaomi's internationalization has taken shape.
A senior mobile phone industry told the "Caijing" reporter, Qualcomm is likely to support millet to open up the US market, which makes some Chinese mobile phone manufacturers under pressure. 'Such as Huawei, the United States has always been Huawei's unprofitable market.' The above said .
In recent years, the strength of millet in the Indian market, but also with the institutional investors are not unrelated.According to Reuters, 2015 India Tata Co., Ltd. CEO Laden • Tata has bought some millet shares, Tata Limited The company is the holding company of Tata Group and is considered a strong endorsement of Xiaomi's presence in the Indian market, although the exact amount has not been disclosed.
Counterpoint data show that in January this year, millet has become India's market share of the first brand, ending the rule of Samsung for as long as 6 years.An Indian mobile phone dealer in the frontline told "Finance", millet can quickly rise, In addition to the price adjustment, in part because of the policy, Xiaomi already has two factories in the area.
These initial investors, with their strong resources, are strongly assisted by the different phases of millet growth and will be well rewarded if the ultimate offshore listing is available.
The internal materials obtained by the "Finance and Economics" show that Xiaomi has held a listing and start-up meeting on January 19 this year and plans to have an estimated value of about 200 billion U.S. dollars, which will make Xiaomi more than Baidu (80.9 billion U.S. dollars) BAT becomes ATM.
Some people think that it is because millet has always been good at playing boxing, non-stop for suppliers, capitalists and other members of the ecosystem hit the hearts and minds, which in turn allows the valuation soared from 250 million in 2010, almost doubled every year Rose to E round of financing by 2014, millet has been valued at 450 billion US dollars, doubled 180 times.
An investor close to millet told Caijing that prior to listing, the shareholders of the company had a priority right to dividend. In 2014, the Wall Street Journal reported that millet had a profit of 3.46 billion yuan, which was the same as the 349 million yuan disclosed by Xiaomi A long way to go 'Millet hid the part of the profits assigned to institutional shareholders, but after the listing, we must standardize the process,' the investor said.