Xiaomi files for IPO in Hong Kong

Smartphone and connected device maker Xiaomi filed for a Hong Kong initial public offering on 3 May, in what is expected to be one of the largest listings by a Chinese tech company in almost four years.

The announcement came as the company posted revenue of 114.62 billion yuan ($18 billion) in 2017, up 67.5 percent against 2016. It also said it made a net loss of 43.89 billion yuan versus a profit of 491.6 million yuan in 2016.

Operating profit for 2017 was 12.22 billion yuan, up from 3.79 billion yuan a year ago.

Alongside smartphones, Xiaomi makes dozens of internet-connected home appliances and gadgets, including scooters, air purifiers and rice cookers, although it derives most of its profits from internet services.

In 2017, Xiaomi had begun asking banks to pitch for an initial public offering and was floated to be the largest IPO listing of 2018. It has enlisted Goldman Sachs, CSLA and Morgan Stanley for its proposed listing.

Meanwhile, Xiaomi’s founder Lei Jun had said that he intends to distribute the profits from its hardware business amongst Xiaomi’s users. How he would do that hasn’t yet been specified.

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