Xiaomi eyes a mammoth 50 Billion Dollar IPO
Chinese smartphone manufacturer Xiaomi is considering an Initial Public Offering as early as 2018 with a valuation of 50 billion dollars. This will be one the biggest tech companies IPOs to have ever occurred in the recent times.
Xiaomi is in talks with investment banks to have an IPO in the year 2018. It is speculated that Hong Kong will be the chosen destination for the initial offering. Some of the Xiaomi officials are expecting a higher valuation as the last cash injection happened in 2014 with a valuation of 46 billion dollars. Ever since that fundraising it has come forward a long way and fared well. The Chinese manufacturer is aiming to inject almost 5 billion dollars in order to beat big rivals in different economies of Asia.
Xiaomi, sometimes called as Apple copycat, is a fairly young company launched back in 2010. Unlike traditional companies, it has capitalized by making low cost yet power packed devices for its consumers. Xiaomi has beaten big rivals in India, its most recent market, where Samsung was leading with a good standing. Now in a matter of 3 years, it has emerged as the top smartphone brand.
In Pakistan as well, Xiaomi has been introduced through Smartlink technologies, and so far the market and consumers have embraced the brand with open arms.
The company might be doing miracles in India, a very big market, but it has its fair share of challenges in its home town where Oppo and Vivo are giving it a very tough competition. In the first quarter of this year, Xiaomi ranked fifth.
Although, Xiaomi is right now targeting the emerging economies, its eyes are also set of US market where it has been reluctant in launching its low-cost smartphones. As the brand vows to ship 100M smartphones next year, it can expect a chunk of some sales to come from US, a market waiting to be explored by the Chinese manufacturer.