XiaomiAims For IPO At Hong Kong Stock Exchange
Xiaomi has filed at the Hong Kong Stock Exchange to go public. The company is reportedly eyeing to raise a whopping $10 billion at a valuation of nearly $100 billion. Based on market cap, the Chinese electronic manufacturer can become the 3rd biggest technology company if the IPO goes according to plan. Xiaomi operates differently than other smartphone companies. It works on a very thin profit margin. Apart from selling smartphones, the company also operates its internet services business and retail business.
According to the company, more than 190 million people use its MIUI variety of Android. Xiaomi has also said that in a day on average its customers spend 4.5 hours on its smartphones. More than 1.4 million people around the world own 5 or more than 5 Xiaomi connected devices. According to the analyst firm IDC, it has been confirmed that Xiaomi is ranked 4th on worldwide smartphone shipments. Xiaomi’s financials are also very striking.
In 2017 alone, the company reported sales of approximately 114.6 billion RMB. In 2016 it reported sales of 68.4 billion RMB whereas in 2015 the company’s sales were 66.8 billion RMB. Also, in 2017, the company reported a loss of 43.9 billion RMB as it issued preferred shares to investors. Smartphones are the most selling product of the company an account for roughly 70 percent of its overall sales. In just a couple of years, the Chinese based company has become a global brand. A considerable chunk of its sales revenue is generated globally. The company performs significantly well in India when it comes to overseas market. Based on market share, Xiaomi’s smartphones are number 1 in India.
The company has said that it will look to expand sales in Southeast Asia, Russia and Europe as well. Xiaomi sells smartphones in 74 countries at the moment. U.S is not a major market for the company right now as it only sells non-phone items and accessories in the U.S. Xiaomi also invests heavily in Research and Development. 30 percent of the company’s budget is spent on R&D.