Smartphone maker Xiaomi Corp, which is expected to make a landmark stock market debut in coming weeks, has lowered its anticipated valuation to between $55 and $70 billion, in addition to delaying the mainland portion of the listing, sources told Reuters.
The company was initially poised to gain a valuation of at least $70 billion during its IPO, with some estimates as high as $100 billion.
Xiaomi also said on its website that it plans to delay selling shares on mainland stock exchanges until after its Hong Kong IPO, due to disagreements with state regulators over the valuation of the China depositary receipts (CDRs) it plans to issue. The CDRs have been designed by the government to attract large Chinese tech firms to list at home, but Xiaomi’s reluctance may dent investors’ confidence in the security.
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