Xiaomi gets IPO nod from HK exchange, say sources

Xiaomi's smartphones on display in Hong Kong. The Beijing-based firm is said to be seeking about US$10 billion (S$13.4 billion) from its IPO. It was the first to file for a Hong Kong IPO with a weighted-voting rights structure after the city's bourse
Xiaomi's smartphones on display in Hong Kong. The Beijing-based firm is said to be seeking about US$10 billion (S$13.4 billion) from its IPO. It was the first to file for a Hong Kong IPO with a weighted-voting rights structure after the city's bourse changed rules in April, and could also become the first firm to issue Chinese depositary receipts, in a planned mainland listing.PHOTO: AGENCE FRANCE-PRESS

Offering could become world's largest first-time share sale since Alibaba's listing

BEIJING • Xiaomi has won Hong Kong stock exchange approval for its planned initial public offering (IPO), which would be the first listing in the city with weighted voting rights, people with knowledge of the matter said.

The smartphone maker passed its so-called listing hearing on Thursday, said the sources, who asked not to be identified because the information is private.

Xiaomi plans to start gauging investor demand in the next few days, one of the people said. Xiaomi is one of the most hotly anticipated Hong Kong deals in years.

The Beijing-based firm, led by serial entrepreneur Lei Jun, is said to be seeking about US$10 billion (S$13.4 billion) from the IPO.

The offering could become the world's largest first-time share sale since Alibaba Group Holding listed in the United States in 2014, Bloomberg data shows. Xiaomi was the first to file for a Hong Kong IPO with a weighted-voting rights structure after the city's bourse changed rules in April. It could also become the first firm to issue Chinese depositary receipts, after it picked Citic Securities to handle a planned mainland listing.

A representative for Xiaomi declined to comment.

The Hong Kong Economic Times reported the approval earlier, citing unidentified people. Citic Securities unit CLSA, Goldman Sachs and Morgan Stanley are joint sponsors of the Hong Kong IPO, according to a stock exchange filing last month.

Credit Suisse, Deutsche Bank, JPMorgan Chase and six Chinese banks are also helping to arrange the share sale, people familiar with the matter have said.

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A version of this article appeared in the print edition of The Straits Times on June 09, 2018, with the headline 'Xiaomi gets IPO nod from HK exchange, say sources'. Print Edition | Subscribe