Xiaomi files for IPO in Hong Kong, aims for $100bn value
Beijing, May 3: Chinese smartphone maker Xiaomi has officially filed for an initial public offering (IPO) in Hong Kong that aims to raise $10 billion in a sale that may value the company at $100 billion.
According to a report in South China Morning Post on Thursday, the move "would catapult Xiaomi past Baidu and JD.com to become the third-biggest Chinese technology company by value, after Tencent Holdings and Alibaba Group".
"At $10 billion, Xiaomi's IPO would also be the 15th biggest of all time, or the fourth-largest in Hong Kong," it added.
According to the regulatory filing with the Hong Kong stock exchange, Xiaomi also reported a revenue of $18 billion and a gross profit of $2.3 billion in 2017.
The company is currently at the fourth position in the smartphone market globally, behind Samsung, Apple and Huawei.
Xiaomi, which means millet in Chinese, will use 30 per cent of its IPO proceeds to develop the ecosystem of its technology business, especially in Artificial Intelligence (AI) and Internet of Things (IoT), the report noted.
In the first quarter of 2018, Xiaomi with over 51 per cent growth was at fifth spot in China, Counterpoint Research reported. Xiaomi was the fastest growing brand in China during the quarter.
The growth was driven by Xiaomi's expansion in the offline segment with aggressive promotions. It also refreshed its Redmi Note series and now has a very strong product portfolio in the mid segment, giving more choice to budget-conscious consumers.
In the first quarter of 2018, Xiaomi once again topped the Indian smartphone market, reporting an over 31 per cent market share -- a whopping 155 per cent annual shipment growth.
Xiaomi Chairman, CEO and Founder Lei Jun in April announced that the company will forever limit the net profit margin after tax for the entire hardware sales -- including smartphones, Internet of Things (IoT) and lifestyle products -- to a maximum of five per cent.
Lei promised its users that the company's hardware business will have an overall net profit margin that will never exceed five per cent.
"If the margin crosses five per cent, then we will find a way to return the excess above five per cent to our users," he said in an email to all Xiaomi employees.
"If we sell our products at close to cost and return value to our users, then we can earn the long-term support of our users. Aiming for large volumes with small profit margins will still result in suitable hardware profits for us in the long term," the Xiaomi CEO added.
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Protest march held in Kolkata over people's 'harassment' during Bengal SIR
Kolkata (PTI): An organisation led by West Bengal minister Siddiqullah Chowdhury took out a march here on Tuesday to protest against the alleged harassment of people during the ongoing Special Intensive Revision (SIR) of electoral rolls in the state.
The procession by Jamiat-e-Ulama-e-Hind began in the Rajabazar area of north-central Kolkata and culminated at Esplanade in the central part of the city, covering a distance of about 4.5 kilometres.
A large number of protesters, including women and elderly persons, participated in the march and raised slogans against the Centre and the Election Commission.
Chowdhury alleged that residents of West Bengal, including senior citizens, were being forced to stand in long queues for hours for verification, which is "inhuman".
"We will continue our fight through democratic means. Injustice is being meted out to us, which is not acceptable," said the state minister for mass education extension and library services.
He alleged that the central government was pressuring the Election Commission to conduct the SIR ahead of the state assembly elections this year.
Responding to a question on whether minorities were being selectively targeted during the voter list revision exercise, Chowdhury said the protest was "against oppression and the undermining of the independence of an autonomous constitutional institution".
