On Friday, Xiaomi IPO was priced at HK$17 per share, raising 4.7 billion US dollars. The original Xiaomi estimated price range was 17-22 Hong Kong dollars, issuing about 2.18 billion shares. IPO's valuation of Xiaomi is about 54 billion US dollars, much lower than The original hope of 100 billion US dollars. Xiaomi stock will be listed in Hong Kong next Monday.
Analysts believe that the low price of Xiaomi IPO is caused by many factors, such as the delay of China's CDR and the recent emotional instability in the global securities market, the Chinese stock market is sluggish, the Sino-US trade war is overcast, etc. However, some analysts said that the market believes that Xiaomi hype Over-the-counter is the main reason. Dicky King, research executive director of Hong Kong King Lee, said: 'The actual millet is not an Internet company, just a hardware company, this is the problem.'
But Xiaomi doesn't think so. The company's CEO Lei Jun said in the prospectus last month that Xiaomi wants to be the 'coolest' company, producing 'moving, price-conscious products', and 'innovatively driven Internet companies'. Xiaomi mobile phone has been positively evaluated. The 'Internet of Things' platform with over 100 million connected devices is very popular, but Xiaomi's business is mainly driven by the rapid growth of the domestic market and Indian business.
Xiaomi did not sell mobile phones in the United States, but Wang Xiang, the head of international business, said that this would change. He told CNBC: 'We have been taking the US market seriously. The US market is very important to us. We are very serious about building our resources and serving them. American consumers. 'Further attention to other markets means that Xiaomi can avoid the US government's censorship, which often sanctions and restricts Chinese companies such as Huawei and ZTE on the grounds of national security. Analysts say that Xiaomi's future depends on diversification. Lei Jun publicly stated that his hardware business net profit margin never exceeded 5%, and promised to open up new revenue streams. IDC's China general manager Huo Jinjie said: 'The key question is how Xiaomi can quickly change the business model for some higher-income businesses.' She said that Xiaomi has invested in the semiconductor business, and it would be good to focus on corporate business rather than consumer 2000 business and artificial intelligence.
Analysts still believe that Xiaomi will eventually issue CDRs, but there are differences as to when to do so. Some analysts believe that in the next few months, but others are expected to be next year. In fact, some analysts believe that Xiaomi is listed in Hong Kong first. Wise. Nomura Securities said: 'The mainland market has always protected the interests of ordinary investors', while Hong Kong investors pay attention to performance and ultimately 'provide fair value'.