HONG KONG (Reuters / IFR) – China's Xiaomi Corp ( 1810.HK ) valued its initial public offering in Hong Kong (IPO) at the limit of an indicative range, raising $ 4.72 billion in the largest technology Float in four years, people close to the transaction said Friday.
Xiaomi valued its stock offer at HK $ 17 per share ($ 2.17), the lower part of a price range from HK $ 17 to HK $ 22, people said. It is selling approximately 2.18 billion shares, said one of the people, making the IPO the largest in the technology sector since Alibaba Group Holding Ltd ( BABA.N ) raised $ 25 thousand million in New York in 2014.  Xiaomi declined to comment on IPO prices. People did not want to be identified since the information was not public.
The price comes at a sensitive time for the Hong Kong stock exchange, with the benchmark Hang Seng index falling 6.5 percent this month and 4.8 percent this year amid growing trade tension between the governments of the United States and China.
The sale of shares is widely seen as proof of the Market sentiment for what is expected In the second half of the year, in terms of initial public offerings in Hong Kong, including offers from China Tower, the world's largest mobile operator, and Meituan Dianping, a mbadive service platform of food delivery online.
Several Chinese IPO candidates preparing to float in Hong Kong and New York could meet with cautious investors if tensions persist between the two largest economies in the world, which could drag amounts of capital increase after a first half stellar.
China Tower won approval in Hong Kong for an initial public offering that could raise up to $ 10 billion. However, its publication schedule will depend to some extent on how well Xiaomi's treatment is received, the sources told Reuters.
The IPO of Xiaomi adds to the $ 6 billion of new listings so far in 2018 in Hong Kong and will be the first according to the new exchange rules of the city, allowing common dual-clbad shares in the technology industry in an attempt to attract technological floats.
The firm aligned $ 548 million from seven corner investors for its share sale including United States chipmaker Qualcomm Inc ( QCOM.O ) and telecoms service provider China Mobile Ltd ( 0941.HK )
Established in 2010, Xiaomi doubled its smartphone shipments in 2017 to become the fourth largest manufacturer in the world, according to Counterpoint Research, challenging a global slowdown in sales of phones. It also manufactures dozens of appliances and appliances connected to the Internet, including scooters, air purifiers and rice cookers.
Xiaomi was expected to raise up to $ 10 billion, divided between Hong Kong and mainland China, but last week shelved the continental offer until after trading in Hong Kong.
The decision was mainly due to a dispute between Xiaomi and Chinese regulators over the valuation of the company's China deposit receipts (CDR), people close to the matter told Reuters.
Xiaomi said last week that there was no such dispute. But he also said there was no time frame for the issuance of CDR, which cast doubt on the government's efforts to attract China's publicly traded giants to its country.
Xiaomi based in Beijing, based in the Cayman Islands, will start trading in Hong Kong on July 9.
Report of Fiona Lau of IFR and Julie Zhu; Edition by Christopher Cushing