Xiaomi has raised over US$5.0 billion in the year's largest IPO. The world's fourth-largest smartphone maker is expected to begin trading in Hong Kong on Monday under the symbol 1810. At the start of the year, its highly-anticipated offering was rumored to value it as high as $100 billion, but at IPO its valuation came in at about half that.
Xiaomi may have waited until an inopportune time for its long-awaited IPO: Shanghai's SSE Index is down 17% year-to-date, while Hong Kong's Hang Seng Index is down 5%. Reports on Friday indicated that Xiaomi's shares had received little interest in gray market trading.
After a disappointing 2016, Xiaomi grew rapidly in 2017 by expanding distribution for its low-cost smartphones, sold at an average price of US$133. Its historically low margins have also improved. That said, Xiaomi's low prices and fierce competition could threaten the sustainability of its recent growth.
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