China’s Xiaomi makes underwhelming public debut in Hong Kong IPO

10 July, 2018, 06:25 | Author: Sammy Rose
  • China’s Xiaomi makes underwhelming public debut in Hong Kong IPO

The IPO opened at a price of HK $16.60 (about $2.12 USD) per share which is a fair amount below the original IPO value of HK $17. During the day prices slipped to as low as HK$16 ($2.04) but managed to climb to HK$16.80 ($2.14) by closing time.

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.

Shares in Xiaomi, the Chinese mobile phone maker, slid nearly 6% at the start of trading in Hong Kong.

The company had also expected to split its listing with another offering on mainland China, but cancelled that. "Without the innovation of Hong Kong's capital markets, we wouldn't get a chance to go public in Hong Kong", Xiaomi's founder and chief executive Lei Jun told the listing ceremony at the Hong Kong stock exchange. Apple is trading at 16 times earnings and Chinese social media giant Tencent is trading at 36 times.

Xiaomi's float was the first under the city's new rules allowing firms to weight voting rights in favor of company founders, as part of efforts to encourage more tech groups to choose Hong Kong over NY, its arch-rival.

"Investors are skeptical about Xiaomi's growth momentum as the global smartphone market seems to be on a downward slope", said Jacky Zhang, an analyst at BOC International in Shanghai.

New vaccine for HIV virus gives hope to knock out AIDS
Among people aged 13 to 24 with HIV , an estimated 51 percent were not aware that they have the disease. However, this " mosaic " HIV-1 vaccine has a multi-target approach.


Maturing France must stifle Lukaku and Hazard, says Varane
Excluding shootouts, France have lost just one of their last 13 games in the knockout rounds of the World Cup (W10 D2 L1). The Chelsea star has been involved in 14 goals in his past 14 internationals, with eight goals and six assists.


Trump administration threatened Ecuador over its support of breastfeeding resolution
Initial US hostility was triggered by a draft passage calling on governments to "protect, promote and support breast feeding". Patti Rundall, policy director for Baby Milk Action, told the Times that "We were astonished, appalled and also saddened".


Typically companies are valued on a multiple of profits or sales.

"We are an internet firm".

The float adds to Hong Kong's $7 billion worth of new listings this year.

However, Xiaomi was still able to secure $4.7 billion United States dollars from institutional investors. It is also the first under the city's new exchange rules permitting dual-class shares, common in the US tech industry in an attempt to attract tech floats.

Xiaomi is the biggest smartphone seller in India and is making inroads in Europe.

Recommended:

  • ‘Out-of-control’ Johnny Depp sued for alleged attack on film set

    The lawsuit also claims that the crewmember was sacked when he refused to sign papers saying he wouldn't sue over the incident. Rocky is suing for an unspecified amount and claims that Johnny reeked of alcohol while he was attacking him.
    Iranian teenager arrested over Instagram video, women dance on streets to protest

    Iranian teenager arrested over Instagram video, women dance on streets to protest

    The state banned the popular Telegram messaging app in May 2018 and Facebook and Twitter in 2009. Hojabri and an unknown number of other social media users were arrested at an unknown date.
    Antonio Conte begins Chelsea preseason with double session

    Antonio Conte begins Chelsea preseason with double session

    And the former Juventus boss was present at Cobham on Monday as Chelsea got their preparations for the 2018-19 season underway. They have also targeted a number of transfer targets Sarri has approved.
  • How to watch the SCOTUS announcement online

    How to watch the SCOTUS announcement online

    Mike Lee received a phone call Monday from President Donald Trump telling him he would not be his nominee for the U.S. The group says it has reserved air time nationally and in those same states for another four weeks.
    Alexander Zverev Wins Battle Of Wimbledon's Rising Stars

    Alexander Zverev Wins Battle Of Wimbledon's Rising Stars

    Zverev said he was returning much harder on Friday, rushing Fritz and giving him less time to react. I thought after I won the third set, I'm going to get out with a win.
    'I kind of like Hitman a lot' - Rohit Sharma

    'I kind of like Hitman a lot' - Rohit Sharma

    Rohit duly reached his hundred, and Pandya provided the exclamation mark with a six off the fourth ball of the 19th over. England , however, were to fall short of what their openers had indicated might be possible.
  • Donald Trump Picks Judge Brett Kavanaugh For US Supreme Court

    Donald Trump Picks Judge Brett Kavanaugh For US Supreme Court

    Judge Brett Kavanaugh looked to have the inside track within the White House last week but may have hit a snag. The president also has been considering federal appeals court Judges Raymond Kethledge and Thomas Hardiman.

    Sen. Casey Comes Out Against Trump Nominee Before Pick is Announced

    He's a flawless 21 for 21 in confirming the federal appeals-court nominees of President Trump, with more to come this year. Some conservative activists have questioned whether he would rule sufficiently aggressively as a justice.
    Lebanese al-Mazbouh Tourist Gets 8 Years For Video 'Insulting Egypt'

    Lebanese al-Mazbouh Tourist Gets 8 Years For Video 'Insulting Egypt'

    Initially, she was sentenced to 11 years in prison, but that was amended within hours to eight years, the judicial source said . She was charged with "deliberately broadcasting false rumors which aim to undermine society and attack religions".
  • Southgate tells England stars to 'be bigger than 1966 heroes'

    Southgate tells England stars to 'be bigger than 1966 heroes'

    A group of England fans smashed the windscreen of an ambulance auto as celebrations got out of hand at London's Borough Market. The official Joint Response Unit Twitter account also tweeted to say: "We are better than this England".
    1 killed when helicopter crashes into Virginia homes

    1 killed when helicopter crashes into Virginia homes

    The aircraft was an R44 helicopter, according to the FAA, which tweeted updates about the crash over the weekend. NBC affiliate WRAL reports the death was confirmed in a statement from Virginia State Police.
    Thai Cave Rescue: Sixth Boy Leaves, Six Soccer Players and Coach Remain

    Thai Cave Rescue: Sixth Boy Leaves, Six Soccer Players and Coach Remain

    Cave rescue experts have said they consider an underwater escape to be a last resort, especially with people untrained in diving. Narongsak said rescuers had to tighten a guide rope as part of their preparations for the second phase of the rescue on Monday.


Popular

New Orleans Family Says Goodbye To Son In Unique Way
He was dressed in his Celtics jersey, playing National Basketball Association 2K on an XBOX with his favorite snacks and chair. In his hands was a PS4 controller, and a phone on his lap plugged into what appears to be a portable charger.

New Jersey woman dies after utility cuts power to her home
Sherd said he paid the minimum $300 every month, and paid $400 in June, prior to the $500 payment made this month. A day late and a dollar short, the power company turned on Daniels' electricity one day after she died.

GBP/USD stumbles at 1.33 as Brexit continues to fracture the UK's parliament
Under Conservative Party rules, a leadership race could be triggered if at least 48 of her MPs declared their support for one. Leaving the gathering, leading Brexiteer Jacob Rees-Mogg said he did not think there would be a confidence vote over Mrs May.

'It's Coming Home!' England fans get World Cup fever
Former EastEnders star Harry Reid posted about both the World Cup game and Pride London, taking place on the same day. An incredible 22 years after it's original release at EURO 1996, Three Lions is UK No 1 once again.

Ghanaians react to Russia's shootout defeat to Croatia
While they have a case when it comes to political symbols and the like, this is merely a player remembering his friend who died. France comfortably defeated Uruguay 2-0 in the quarter finals, but is likely to fall short against its neighbor, Goldman said.

London ambulance damaged as England fans celebrate World Cup quarter-final win
Former England goalkeeper David Seaman believes Jordan Pickford is relishing proving his critics wrong at the World Cup. England fans have been superb since day one and they're going to have to be louder than ever for the Croatia game.

OMCs gain as US-China trade war fears weigh on oil prices
President Trump said on Thursday he may ultimately impose tariffs on more than a half-trillion dollars worth of Chinese goods. Import duties would make US oil uncompetitive in China, forcing its refiners to seek alternative supplies in a tight market.

Md. Native Travis Pastrana Completes Three Evel Knievel Stunts
Pastrana ended the event by jumping into the fountain as hundreds of fans on the streets of Las Vegas cheered him on. The stunts air live Sunday as part of " Evel Live " beginning at 8 p.m.

Trump to Announce His Supreme Court Nominee Tonight
The stakes are enormous, and advocacy groups that don't have to unveil their donors are spending heavily to shape the fight. Some activists are calling for Democrats to adopt a scorched earth policy and block the confirmation process at all costs.

Russia salutes 'heroes' after Croatia ends World Cup dream
Russian Federation head coach Stanislav Cherchesov said his team were understandably disappointed with the result. There was not a single national team in the World Cup that had the complete trust of their country.