Xiaomi cuts target valuation to 700-800 billion US dollars

According to the Wall Street Journal, according to a person familiar with the situation, according to a Wall Street Journal report, before the IPO, Xiaomi’s target valuation in the next IPO was 70 billion - 80 billion US dollars.

Although Xiaomi did not disclose the size of the listing or the expected valuation details, according to the newspaper quoted informed sources, this valuation range is lower than previously discussed 100 billion US dollars, the company plans to raise at least 10 billion US dollars in this transaction.

The person familiar with the matter said that under the recent global stock market downturn, Xiaomi's previous target valuation was too aggressive.

For Xiaomi’s previous valuation of US$100 billion, Hong Wei, the head of the Bank’s Managing Director and Research Department, had previously indicated that the valuation was too high, much higher than that of many companies of the same type. According to the prospectus’s display of Xiaomi Jing’s The profit data is valued according to the investment bank's PE method. Xiaomi's valuation is as high as 83 times.

Hong Hao said that the valuation of the same type of Apple company is only about 13 times. In Hong Hao's view, under the current macro liquidity contraction situation, the giant IPO for Xiaomi, the market may be difficult to digest.

Last week, the company submitted an IPO application to the Hong Kong Stock Exchange, which is expected to become the first share of the "shares with different rights" of the Hong Kong Stock Exchange and is considered to be the world's largest IPO since 2014.

The Wall Street Journal reported last week that Xiaomi is expected to soon be listed in the Mainland after being listed in Hong Kong, becoming one of the first companies to use the China Depositary Receipt (CDR) for listing.

Previously, although Xiaomi had not disclosed the details of the listed company or the expected valuation of the company, informed sources revealed that Xiaomi's valuation range may be lower than the previously announced 100 billion US dollars (about 636.7 billion yuan). The current valuation is Have dropped.

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