Xiaomi, a popular Chinese smartphone and connected device making company has filed for a Hong Kong initial public offering earlier today which is believed to be the largest listing filed by any Chinese tech company in the last 4 years. With the listing, the value of the company can go up to $100 billion and could be the biggest Chinese tech IPO since Alibaba Group Holding Ltd raised about $21.8 billion in the year 2014.
Announcing the same, the consumer electronic company gave investors the first detailed look at its financial position ahead of the much talked IPO. See More: Xiaomi Redmi S2 Leaked Images Reveal Design & Specifications; Likely to Sport Redmi Note 5 Pro Dual Camera
As per the company, the recorded revenue of the firm was 114.62 billion yuan which is approximately $18 billion in the year 2017 registering a growth of 67.5 per cent in comparison to the year 2016. The company also confirmed that it also made a net loss of 43.89 billion yuan in comparison to the profit of 491.6 million yuan in 2016. Moreover, the operating profit of the company for the year 2017 stood at 12.22 billion yuan which grew from 3.79 billion yuan in 2016.
The company also make other internet connected devices and home appliances apart from smartphones. These devices include scooters, air purifiers and rice cookers and much more, however, the company drives most of its profits from internet services.
With the amount of competition in the smartphone market, the demand for the relatively cheap handsets poses a challenge to other market leaders such as Samsung Electronics Co Ltd and Apple Inc. Read Also: New Xiaomi Mi 6X (Mi A2) with Dual Camera Launched in China; India Launch, Price, Specifications & Features
The IPO from Xiaomi is believed to be one of the first tech listings in Hong Kong under the new rules which came into effect on Monday as competition for major tech deals will amplify between Hong Kong, New York and Chinese mainland. Moreover, CLSA, Morgan Stanley and Goldman Sachs Group Inc are sponsoring Xiaomi's IPO.