Today, July 9, was the first day for Xiaomi on the Hong Kong Stock Exchange, with the stock closing at $2.14, giving the Chinese smartphone manufacturer a valuation of almost $50 billion, though it should be noted that this is half the market capitalization of $100 billion that was expected from the IPO. If the shares perform poorly in the coming days and weeks, they could hurt the prospects of other tech companies who are preparing their own multibillion-dollar listings in the city.
Xiaomi priced its Hong Kong initial public offering (IPO) at HK$17 per share, the bottom of an indicative range, raising US$4.72 billion (S$6.4 billion) in the world's biggest technology float in four years.
Its shares touched a low of HK$16 in opening deals.
Asked if the low pricing of Xiaomi and some other technology firms will weigh on upcoming IPOs, Hong Kong stock exchange CEO Charles Li said at the Xiaomi listing ceremony: "We can not put a brake".More news: J.B. Smoove Joins Spider-Man: Far From Home Cast
Chinese smartphone giant Xiaomi has listed in Hong Kong for $4.7bn (£3.5bn), around half the amount the company had said it hoped to raise in a lacklustre listing.
While Xiaomi does not sell its products in America at the moment, the company has said it plans to before the end of next year.
"We are an internet firm".
Xiaomi also made its debut amid an escalating trade war between the United States and China, which has sent the Hong Kong stock market, Hang Seng, to a nine-month low.More news: Boris Johnson quits as British foreign minister
The float adds to Hong Kong's $7 billion worth of new listings this year.
Xiaomi's IPO began on Monday in Hong Kong to a fairly slow start, with trade slipping more than 2%, sometimes dropping by 5.88%. It is also the first under the city's new exchange rules permitting dual-class shares, common in the USA tech industry in an attempt to attract tech floats.
But doubts about the sustainability of its business model were among the reasons for the lower valuation, analysts said.More news: Woman on oxygen tank dies after her power is cut off
- President Trump nominates Brett Kavanaugh for Supreme Court
- North Korea talks sidelining human rights: United Nations rapporteur
- 'Damn Yankees' Star Tab Hunter Dead at 86
- Trump nominates conservative Judge Brett Kavanaugh to Supreme Court
- Johnny Depp Sued For Allegedly Assaulting City Of Lies Crew Member
- Croatia Lands in Moscow Ahead of World Cup Showdown with England
- Donald Trump still pondering Supreme Court pick as big reveal nears
- NOLA Family Says Goodbye to Son with a Unique Sony Spin
- UK: Dawn Sturgess dies after exposure to nerve agent Novichok
- Ohio Abuse Scandal Spurs Blaming of the "Deep State"