On the morning of June 21, Xiaomi announced the HKEx's information after hearing: Xiaomi began accepting subscriptions, and the IPO of Hong Kong raised up to US$6.11 billion. The legal value of Xiaomi’s statutory share capital is US$675,000 and consists of 70 billion A shares (valued at 175,000 (USD) and 200 billion B shares (valued at US$500,000). December 31, 2017 Xiaomi’s financial valuation was RMB38,252.5 million, with a valuation of RMB3.8325 (a total of 100 million shares). In addition, Bloomberg News The news revealed that Xiaomi is expected to be listed in Hong Kong on July 9.
The mill's post-hearing dataset shows that the company has a different voting rights structure under which the company’s share capital will be divided into Class A shares and Class B shares. For any resolution proposed to the company’s general meeting, class A shares held Someone may vote for 10 votes per share, while holders of Class B shares may cast one vote per share, with the exception of voting on resolutions concerning limited reservations. In this case, each share will have one vote.
In addition, Xiaomi executive director, founder, chairman and chief executive officer Lei Jun will hold and control 4,295,187,720 Class A shares and 2,283,106,380 Class B shares through multiple intermediate entities (assuming all preferred shares are converted into Class B shares).
Millet went to Hong Kong to increase IPO speed, and more and more cornerstone investors also surfaced. News on the afternoon of June 20 said that China Mobile was negotiating to invest in Xiaomi’s IPO, and China Mobile promptly acknowledged in response to media inquiries. It is true that. The responsible person of China Mobile stated that the company has been actively deploying the TMT industry in the past and looking for strategic investment opportunities. By participating in Xiaomi's IPO investment, it is possible to complement the resources of Xiaomi and obtain synergies in terminal, internet of things and 5G business. The effect will help improve business capabilities and service levels, expand the business landscape, enhance customer stickiness, and further enhance the company's competitiveness and influence. In addition, there is news that Qualcomm, China Merchants, and SFG have signed the list of Xiaomi IPO cornerstone investors. .
According to the documents obtained by Bloomberg, Xiaomi is expected to be listed in Hong Kong on July 9. Xiaomi and existing investors will sell 2.18 billion shares at HK$17 to 22 per share. This includes China Mobile, Qualcomm, CDB Private Equity, Poly. Seven cornerstone investors, including the Group and China Merchants Group, will invest a total of US$548 million to subscribe for Xiaomi's Hong Kong IPO shares. Among them, China Mobile and Qualcomm will each invest US$100 million.
On Tuesday (June 19th), as the country’s first CDR issuer, Xiaomi suddenly announced that it delayed the CDR issuance application, shocking the market. In the morning, Xiaomi official announced that the company had repeatedly and carefully studied Decided to implement the listing plan in Hong Kong and the territory in a step-by-step manner, that is, after listing in Hong Kong first, then choose to issue the CDR through the issuance of CDR. The Securities Regulatory Commission expressed 'respect for the choice of the millet group' in this position and has cancelled the 17th session. The 88th trial meeting of the issuing and examining and approving committee in 2018 examined the company's issuance of declaration documents.
With the countdown of Xiaomi's stock market, how to measure valuation is the biggest controversy. Shen Wanhongyuan research report pointed out that since November last year, the mainland's new economic enterprises listed in Hong Kong have generally suffered a substantial decline after the listing and even fell below the IPO price. Thomson Reuters’ IFR had previously reported that investment bank’s prior research on IPOs had set Xiaomi's valuation between US$65 billion and US$86 billion. Reuters reported that informed sources disclosed that it has decided to postpone CDR listing until After Hong Kong's listing, Xiaomi downgraded the company's valuation from approximately $55bn to $70bn, which is a 45% decrease from its earlier valuation of $100bn. According to Xinhuanet, Xiaomi's suspension of CDR is appropriate. Regardless of when Xiaomi chose to return to A shares again, I believe that waiting for it will be a more complete CDR.