The IPO issue price of Chinese smartphone maker Xiaomi in Hong Kong was finally set at the lower end of the price range: HK$17/share.
On the afternoon of June 29th, Xinyu News reporter learned from an intermediary who was close to Xiaomi’s IPO that Hong Kong’s first new economic stock, “Different shares with the same shares,” Xiaomi (01810.HK) will be priced at the lower limit of the offer price range of – HK$17. The mill's previous offer price range was 17 to 22 Hong Kong dollars.
Xiaomi’s Hong Kong IPO global offering shares amounted to 2.18 billion shares. From this calculation, the amount of financing from Xiaomi was further reduced to approximately HK$37.1 billion.
According to the previous calculations of investment bank's valuation of millet, millet's valuation is only 53.9 billion US dollars, which is obviously lower than the initial valuation of about 70 billion US dollars. With the end of 2014, millet fifth round of financing value of 45 billion US dollars valuation Also not far from each other.
In order to test the market reaction, listed companies set a price range for the offer price.
In the case of large-scale over-purchase, Millet chose the lower limit range price is quite rare.
After Xiaomi IPO's four-day public offering experienced a cold start, on the last day of June 28, Xiaomi IPO received nearly 10 times of individual retail subscriptions.
In respect of institutional subscriptions, the Hong Kong Economic Times reported that Xiaomi International Placement (ie, institutional subscription) ended at 5 pm on June 28, and some institutional investors did not enter the airline until the deadline. According to information in the Xinhua News, Sorghum Capital subscribed. US$600 million, U.S. Capital Group subscribed for 500 million U.S. dollars, and there was market news that a fund owned by 'George Soros', a financial tycoon, also subscribed for a small amount of millet shares. The total purchase volume of these institutions exceeded that of Shunfeng, China. Mobile, China Merchants, and other seven cornerstone investors subscribed for approximately $548 million.
Some market analysts analyzed that in the case of over-purchasing, Xiaomi chose the lower limit range price, and the price is relatively conservative, with little risk. There is also analysis that Xiaomi uses the lower limit of the offer price of HK$17, which may reflect the success of the big customers in lowering prices.
Xiaomi's offer price is 39.6 times this year's price-earnings ratio, and the 2019 forecast price-earnings ratio (PE) is 22.7 times, while Apple and Tencent's 2019 forecast PE are 14.8 times and 36.7 times respectively.
Xiao Jun, chairman and CEO of Xiaomi, said earlier that pricing would make a profit, so that ordinary investors can make money.
The Xiaomi IPO offer is full of twists and turns, full of drama. As a new economy 'super unicorn', Xiaomi has received much attention since the announcement of the launch of the listing, the cornerstone investors are particularly optimistic about Xiaomi, the competition is very intense. Xiaomi from more than 30 Among the finalists, seven cornerstone investors were selected. They jointly invested RMB 549.5 million to subscribe for Xiaomi. The final winner was because of cooperation prospects in the fields of industrial layout, globalization, Internet of Things, trade logistics and Xiaomi, and Xiaomi’s strategy. Produce synergies.
Subsequently, Li Ka-shing confirmed that he spent 30 million US dollars to subscribe for Xiaomi stocks. Ma Yun and Ma Huateng subscribed for orders in their personal capacity, ranging from tens of millions to hundreds of millions of dollars, adding another fire to Xiaomi IPO.
Despite the blessings of the giants, the recent global capital market has been extremely bleak. Sino-US trade disputes, global stock market crashes, market uncertainty has increased significantly, and panic has been severe. New economic companies that landed in Hong Kong stocks have repeatedly broken their bonds and overdrawn investors. Confidence. Many factors also affected Xiaomi’s IPO pace. Although Xiaomi had already completed the super-raising on the first day, the follow-up was plagued by 'cold', 'wait and see', and 'draft'.
According to statistics, 10 times oversubscription of Xiaomi broke the highest record of large-cap stocks (fundraising more than 40 billion Hong Kong dollars or 5 billion US dollars) since 2011, becoming the world's largest retail-sized IPO. The three major representatives of the new economy Sex company, Zhongan Insurance over-subscribed multiples 392 times, Read Group's oversubscribed multiples 620 times, Ping An good doctor oversubscribed multiples 653 times. But the changes in the market environment and the volume of the issue, so that this difference can make understanding.