Tech

Smartphone maker Xiaomi's shares open 2.9% down on debut in Hong Kong

Smartphone maker Xiaomi's shares open 2.9% down on debut in Hong Kong

Lei Jun (center), Xiaomi's CEO with senior vice president Li Wanqiang (left) and executive director Lin Bin (right) ahead of the company's IPO.

A packed initial public offering (IPO) calendar in the coming months will include a $4 billion deal from online food delivery-to-ticketing services platform Meituan Dianping and an up to $10 billion IPO from China Tower, the world's largest mobile tower operator.

"Other IPO candidates will rush to Hong Kong to list before the market sentiment shifts".

Smartphone maker Xiaomi Corp., whose shares will debut in Hong Kong trading Monday, is one of the most-watched tech IPOs since the 2014 flotation of Alibaba Group Holding Ltd. Xiaomi raised $4.7 billion through the issuance of 2.2 billion shares, but the pricing was 23% lower than projected. Shares fell as low as HK$16 a share and were recently at HK$16.82. But some of them may face a bumpy ride amid volatile markets and escalating trade tensions. The market is always open.

Let us know in the comments if you think Xiaomi will do well in the medium and long term in terms of its stock price.

More news: Sagan takes yellow as Gaviria crashes in stage 2

Today, July 9, was the first day for Xiaomi on the Hong Kong Stock Exchange, with the stock closing at $2.14, giving the Chinese smartphone manufacturer a valuation of almost $50 billion, though it should be noted that this is half the market capitalization of $100 billion that was expected from the IPO. Even though much of the company's revenue comes from smartphones sales, Xiaomi has pinned its hope on internet services to account for most of the profit in the future.

Despite Xiaomi's challenging debut, Reuters notes that Hang Seng - the Hong Kong stock market index - was 1.7 percent higher.

Xiaomi sold 2.18 billion shares, making the IPO the largest in the technology sector since Alibaba Group raised $25 billion in NY in 2014. It is also the first under the city's new rules permitting dual-class shares, common among US tech firms, in an attempt to attract tech sector floats.

But doubts about the sustainability of its business model were among the reasons for the lower valuation, analysts said.


  • Gal Gadot dons Wonder Woman outfit to visit sick children in hospital

    Gal Gadot dons Wonder Woman outfit to visit sick children in hospital

    Gal Gadot is now shooting for the next Wonder Woman film, which is set in the year '84. "The kids love it.and so did the staff". Gadot is the mother of two young daughters, the youngest of which she was pregnant with while filming " Wonder Woman ".

    England World Cup revellers warned by police after weekend's "shocking behaviour"

    He said: "This is a celebration - don't go round destroying people's property and don't put people in danger because that is what it does".
    Clarence Thomas' wife defends Jim Jordan in college sex abuse case

    Clarence Thomas' wife defends Jim Jordan in college sex abuse case

    The complaint letter cites news reports that students claimed to have spoken to Jordan about the alleged sex abuse at the time. In response, Jordan told Fox News: "I never saw, never heard of, never was told about any type of abuse".
  • Former senator to guide nominee through Senate

    Former senator to guide nominee through Senate

    Then McConnell and other Republicans reminded Trump of another political goal: the confirmation path of least resistance. Trump has spent the weekend discussing his options with allies and will announce his pick at 9 p.m.
    Daredevil Travis Pastrana replicates Evel Knievel's jumps

    Daredevil Travis Pastrana replicates Evel Knievel's jumps

    Pastrana celebrated and cooled off at the same time by taking a flying leap into the Caesars' fountains. His first jump was something of a warmup - a casual 143 feet over 52 cars stacked three to a pile.
    Kante is the best in the World says Hazard

    Kante is the best in the World says Hazard

    But with the likes of Paul Pogba, Antoine Griezmann and rising star Kylian Mbappe , the team is not short of talent. That was the last competitive match between the two countries but there have been eight global friendlies since.
  • Australia's Aaron Finch breaks his own T20I high score record

    Australia's Aaron Finch breaks his own T20I high score record

    Solomon Mire's career-best knock of 94 propelled Zimbabwe to a challenging 162 for 4 in the allotted 20 overs. Executing his attacking strokes perfectly, Sarfraz found the gaps and the boundaries at regular intervals.

    "Very close": HIV Vaccine ready to test on humans

    The ability to induce HIV-specific immune responses does not necessarily mean the vaccine will protect humans from HIV infection. The achievement was considered to be too small for the drug to go ahead and come into the market as a HIV vaccine .
    Oil prices edge up, U.S.-China trade war in focus

    Oil prices edge up, U.S.-China trade war in focus

    It shows the year-on-year percentage growth in USA non-farm payrolls, splitting the results by oil and non-oil producing states. USA crude futures fell on Thursday as official data showed the country's oil inventories rose unexpectedly last week.
  • Ethiopian leader visits Asmara for historic peace talks

    Ethiopian leader visits Asmara for historic peace talks

    Abiy's chief of staff, Fitsum Arega, said on Twitter that the visit will "further deepen efforts to bring about lasting peace". Abiy has also pardoned dissidents, lifted a state of emergency and promised to partly privatise important state-owned firms.
    White House close to refusing interview with Russian Federation  investigation

    White House close to refusing interview with Russian Federation investigation

    Cohen's going to face the full firepower of the armed and operational Trump-crony battle station if he rolls over. Trump committed a crime and that his testimony is essential to completing the investigation".

    Orange Is the New Black Season 6 Trailer

    Red is seen telling interrogators just how strong her girls are, stating that they have "iron wills and f*cking nothing to lose". It's jarring to see these women that we've followed for so many seasons in a new prison, immediately evoking a feeling of dread.