Xiaomi prefers Hong Kong launch IPO which may bring at least US$5 billion, and the money will be used for expansion

Chinese smartphone maker Xiaomi is seeking initial public offering (IPO) at a valuation of at least US$50 billion, says a Bloomberg report, citing people familiar with the matter.

If everything goes as planned, the Beijing-headquartered firm is likely to launch an IPO in 2018, with Hong Kong as the most likely destination.

A successful IPO may bring Xiaomi at least US$5 billion, which would be used for expansion.

Xiaomi last raised VC funding in 2014 at a US$46 billion valuation. Flush with cash, the company aggressively expanded to countries like India in 2016, but had to scale down operations and lay off staff after its growth slowed  down due to stiff competition from domestic as well as foreign rivals. Xiaomi again gained momentum in recent months.

Also Read: From Korea to Kazakhstan, e27 will search 23 countries to find TOP100 startups

In September, its Founder and CEO Lei Jun announced that the company was going to set up a permanent business entity in Indonesia. “This is the first time I have ever been to Indonesia, and Indonesia has become a main destination for Xiaomi. In addition to China and India, Indonesia is our most important market,” he said then.

Founded in 2010 by serial entrepreneur Lei Jun, Xiaomi manufactures mobile phones and consumer electronics, in addition to developing mobile apps. With its low-cost handsets, Xiaomi targets the lower-middle market, and offers internet value-added products including TV boxes, backpacks, phone screen protectors, and earphones.

The post Chinese smartphone maker Xiaomi seeks IPO in 2018 at US$50B valuation appeared first on e27.