Xiaomi Opened For Trading Lower Than The IPO Price
Shares of Xiaomi smartphone makers in the Chinese market opened more than 2% in their Hong Kong debut on Monday after disappointing listing delays and prices in China.
According to Dow Jones, Xiaomi per share was at 16.60 HK$2.12 below the initial public offering price of HK$17.
Earlier, the company set a range from HK$17 to HK $22 to approximately 2.18 Billion. Supply shares ultimately assessed their initial public offering at the lowest point of the indicative range on Friday. After deduction of expenses and fees, Xiaomi reported that it managed to raise HK$ 23.97 billion.
However, the broader Hang Seng index rose 1.53% during the morning trading session.
The Chinese company, which was only founded in 2010, is currently the fourth largest smartphone manufacturer in the world and has developed low-cost devices that are directly in comparison with iPhone.
Earlier, analysts cited a number of factors for relatively weak prices, such as the slowdown in the CDR in China and the recent negative sentiment in global equities, including the recent fall in the stock market in China and Hong Kong, trade problems between China and the United States.
Xiaomi President and Co-Founder Lin Bin told CNBC that the impact of the trade dispute between the two largest economies in the world has not been a major problem in the short term, as Xiaomi has not made a big deal in the United States.
However, focus on other markets means that companies avoid the rage of the US Government, which strictly adheres to the principles of security and sanctions against Chinese companies, including Xiaomi, NTE, Huawei, and other competitors.
Analysts say that the future of Xiaomi is based on diversification. The law has publicly promised that the net profit on its main equipment will never exceed 5%, this is a bold promise, which the company needs new sources of income for the growth of the company.