- Xiaomi is now open to public investment after filing for an IPO in Hong Kong today.
- The IPO may end up being the largest ever in history.
- The company released a statement announcing its determination to overtake Apple’s market share in China.
Xiaomi has filed for what may be the largest ever initial public offering in business history, as reported by Bloomberg, with a potential valuation of $100 billion, even surpassing the current largest ever IPO ($25 billion), filed by Alibaba in 2014. The IPO was filed today in Hong Kong.
From the financial reports which were publicly released by Xiaomi – a major part of an IPO process – revealed the company is doing quite well, with a 67.5 percent increase in revenue in 2017, which put it at about N6.5 trillion (114.5 billion yuan).
The IPO filing will allow public investors to buy the company shares. According to the filing, the money raised will be divided into four parts, 30% each will go into R&D, global expansion and, AI and IoT ecosystem. The remaining 10% will be for operating capital.
Xiaomi is the current largest smartphone manufacturer in the world, contributing to 7.9 percent of smartphones market share. Ahead of it is Samsung with 21.7 percent, Apple with 14.5 percent, and Huawei with 10.9 percent of the total global smartphones market share.
The Chinese tech company hopes to overtake Apple dominance in China, with respect to market share. According to Lei Jun, co-founder of Xiaomi, the company plans to that by circumventing Apple’s “walled garden” approach and refocusing from being just a hardware development company to something much more.
Even with its goal of conquering the Chinese smartphone market, Xiaomi and its counterparts.(Huawei and ZTE) will still be unable to have a significant threshold in a major market like the U.S, as the trade war between China and the United States deepens.