Xiaomi’s US IPO marks a new journey for the young start-up

时间:2018-06-26 单词数:2520

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小米美国路演开启上市新征程_ 双语新闻

Xiaomi is kicking off the US leg of its global offering this week with drones in New York’s Central Park but its recent Hong Kong roadshow left some investors underwhelmed.


“They want the market to think they are a combination of Apple and Tencent, but they are not,” said the head of the Hong Kong office of one leading New York investment group.


The Chinese smartphone maker is looking to raise up to $6.1billion in its Hong Kong initial public offering but has endured a rocky ride to market.


It mothballed its planned china depositary receipts earlier this month and has also had to prune its ambitions for a $100 billion valuation. Last week’s pricing of shares at between HK$17 and HK$22 implied a market valuation of between $54 billion and $70 billion, or marginally higher if the overallotment option is exercised.


“If they were comparing themselves to Apple, the valuation should be closer to $20 billion,” said one prominent Hong Kong-based venture capitalist.


However, Beijing-based Xiaomi and its advisers argued that it deserves a bigger multiple in recognition of its broader ecosystem.


“We are primarily an internet company,” the offer prospectus stated. “By first selling a wide variety of smart hardware products, we have built a massive and proprietary platform for the delivery of our diverse internet services.”


Internet services accounted for 9.4 per cent of revenues in the first quarter while smartphones contributed 67.5 per cent.