After the four-day IPO cut-off last week, the public subscription data showed that the Xiaomi IPO over-subscription exceeded 10 times, much higher than previous market expectations. Industry insiders said that after the listing of Xiaomi, it will be included in the Hang Seng Composite Index after 10 trading days. , set the fastest record in the history of Hong Kong stocks.
It is understood that on May 7, 2018, Hang Seng Index Company specifically announced that it will include the company's different rights structure companies in the Hang Seng Composite Index from the third quarter. The industry is generally optimistic that the Xiaomi listed on July 9 will be the first. People who eat crabs. As long as the newly listed stocks are listed in the top 10% of the existing constituents of the Hang Seng Composite Index on the first trading day, the stock will be included in the Hang Seng Composite Index and its sub-index on the 10th trading day after listing. .
Being included in the Hang Seng Composite Index illustrates the recognition of Xiaomi by the capital market and Hang Seng Index. Previously, it was confirmed that seven cornerstone investors including Tianhai Investment, China Mobile, China Merchants, Poly Group and Qualcomm jointly contributed 5.495. Billion dollars became the cornerstone investor. Gaochun Capital and Capital Group subscribed for a total of 1.1 billion US dollars, and a fund under Soros also participated in the subscription. Li Ka-shing, Ma Yun, Ma Huateng and other business leaders have participated in the subscription, amounting to tens of millions of dollars. Some foreign media pointed out that the business community's subscription behavior will play a certain demonstration effect on retail investors and bring great help to Xiaomi's IPO. In the current downturn, ordinary investors in Hong Kong also expressed their optimism about Xiaomi. Xiaomi's public offering in Hong Kong recorded nearly 10 times over-purchase, breaking the record of large-cap stock subscriptions since 2011, becoming the world's largest retail-sized IPO.
However, during the first two days of Xiaomi's IPO, it showed the enthusiasm of the rich, and the retail investors were indifferent. On June 27, China National Grid reported that Xiaomi's IPO was shocked, and the frozen capital was about 24 billion Hong Kong dollars. Xiaomi, the first Hong Kong stock company with the same rights and different rights, was slightly cold on the first day of the IPO, and there was a phenomenon of 'sucking' on June 27. Public news, Xiaomi started public offering on June 25, public On the first day of the IPO, the company won a subscription of HK$4.552 billion. The public offering financing in Hong Kong was HK$2,398 million. The over-purchase was only about 0.9 times. It was the most chilling new stock since the first quarter of the IPO.
For the Xiaomi IPO, the industry believes that many investors will subscribe at the last minute. Xiaomi will cut off tomorrow, and believe that the subscription amount will increase. The facts prove that the industry is indeed unique, from June 25 Since the end of the 28th, a total of about 110,000 people subscribed for Xiaomi IPO. After the four-day IPO was closed last week, the public subscription data showed that the Xiaomi IPO was oversubscribed by 10 times, much higher than previous market expectations. This reversal means that Xiaomi has not only become a large-cap stock with the highest number of retail subscriptions in Hong Kong IPOs with a size of more than US$5 billion since 2011. It has also set off a new share subscription in the world with the highest participation in China in recent years.
On June 29, Xiaomi’s valuation dispute was settled. According to media reports, Xiaomi’s IPO issue price in Hong Kong was finally set at HK$17/share, which is at the lower limit of the offer price range of HK$17-22. It was finally determined to be 53.9 billion US dollars. For Xiaomi IPO, Lei Jun once said, 'Pricing will make profits, let ordinary investors have money to make'. And the issue price of HK$17/share also means that Xiaomi is willing to reserve more for investors. Large profit margins, while reducing the probability of breaking after listing.
In this regard, MIT professor Wang Wei used Amazon as a comparison. 'Amazon built a garden in the wall. Although the garden is very beautiful, other players outside can't get in, and the people inside don't want to go out. Xiaomi established It is an open ecosystem formed by multiple partners, and has built a pivotal ecosystem.
In addition, Xiaomi is also advancing plans to enter the US market next year. Wang Xiang, senior vice president of Xiaomi Company, said on Tuesday that the US market is 'very attractive' and the company is increasing its engineering and technical resources to develop mobile phones compatible with US mobile phone networks. I hope to make a difference next year, but the negotiations with the US operators have not yet reached a specific agreement. Wang Xiang said that the trade tensions bring uncertainty, but the company and Qualcomm, the Android operating system parent company Alphabet and other US suppliers The relationship between the two is not in the political problem.