Xiaomi has filed an IPO in Hong Kong, marking the first tech company listing in the special administrative region in recent times. This is a result of loosened rules for allowing companies with multiple classes of shares to raise equity.
The report from Bloomberg says Xiaomi is looking to raise at least $10 billion in the IPO, valuing the company at $100 billion. This will most likely be the biggest offering for a tech company in 2018 and the biggest since Alibabas IPO for $25 billion in 2014.
The initial public offering lets public investors join the company that was just pronounced 4th largest smartphone manufacturer in the world by Strategy Analytics.
The filing revealed 30% of the raised money will be used for AI and IoT ecosystem, 30% for R&D and 30% for global expansion. The remaining 10% are left for operating capital. There is no threat for Lei Jun who will keep his co-ownership with Lin Bin after the IPO through a special class of shares.
In addition to its booming smartphone business, Xiaomi also backs up dozens of startups and total sales from its ecosystem doubled in 2017 to reach CNY 20 billion or about $3.15 billion / 2.6 billion.