India will test Xiaomi's two-pronged strategy
21/06/2018 03:51
(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
By Robyn Mak
HONG KONG, June 21 (Reuters Breakingviews) - The Chinese
maker of affordable phones has scaled down its IPO with plans
now to raise $6 bln. Much of the valuation hangs on internet
services, which Xiaomi is starting to roll out in its top
overseas market. Rivals in India are plentiful, though, and
hungrier for content.
Full view will be published shortly.
On Twitter https://twitter.com/mak_robyn
CONTEXT NEWS
- Chinese smartphone maker Xiaomi plans to raise as much as
$6.1 billion in its Hong Kong initial public offering by selling
about 2.2 billion shares for between HK$17 and HK$22 apiece,
Reuters reported on June 20, citing unnamed sources.
- The Bejing-based, Cayman-domiciled company plans to bring
in eight cornerstone investors to buy about 13 percent to 15
percent of the shares being offered, according to the report.
They include U.S. chipmaker Qualcomm, Chinese express delivery
company SF Holding Co Ltd, domestic telecom provider China
Mobile and state-run conglomerate China Merchants Group Ltd,
Reuters reported.
- Xiaomi lowered its likely valuation to a range of $55
billion to $70 billion, according to an earlier Reuters report,
following a decision to delay an expected mainland offering of
Chinese depositary receipts.
- International sales accounted for 36 percent of Xiaomi’s
total revenue at the end of March, up from 28 percent at the end
of last year. Xiaomi doesn’t break out sales by country, but
says India is its largest market outside mainland China.
- For previous columns by the author, Reuters customers can
click on MAK/
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BREAKINGVIEWS - Only a bold call dials up $75 bln Xiaomi
valuation urn:newsml:reuters.com:*:nL3N1TA15F
BREAKINGVIEWS - Chinese handset-maker Xiaomi wins tech IPO bingo
urn:newsml:reuters.com:*:nL3N1SA0E2
BREAKINGVIEWS - Xiaomi puts collective spin on tech IPO vows
urn:newsml:reuters.com:*:nL8N1S23UJ
China's Xiaomi targets as much as $6.1 billion in Hong Kong IPO
urn:newsml:reuters.com:*:nL4N1TM39M
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(Editing by Una Galani and Katrina Hamlin)
((robyn.mak@thomsonreuters.com; Reuters Messaging:
robyn.mak.thomsonreuters.com@reuters.net))