Chinese smartphone maker Xiaomi Inc. is planning to go public by 2018 and is now seeking the funds from banks by next Friday. This was revealed by sources that are familiar with the plan. The Chinese smartphone company has a market value of $46 billion after its last round of funding back in 2014. The company has seen its expectation of increased market value increase after its posted strong results so far this year.
According to the sources, the initial public offering would be the biggest in the tech industry next year. One of the sources stated that the IPO would be huge, with the company looking to reach a valuation of $100 billion.
Xiaomi which was the most valuable tech startup back in 2014 currently has a market value of roughly $55 billion, stated one of the sources who is close to the company. The other two sources though disclosed that the market value is slightly higher than that due to its high expected earnings.
When contacted, Xiaomi declined to make a comment.
The smartphone maker witnessed its stagnant sales back in 2016 as the company aimed to expand its reach internationally and at the same time fighting intense competition from local rivals Huawei Technologies Co Ltd, Vivo and Oppo. At that time, Xiaomi had to pull out its businesses from several countries such as Brazil and Indonesia. This year has favored them though as they have launched and re-launched sales in several countries like Indonesia, Vietnam, Russia, the United Arab Emirates and Ukraine.
The company has also overtaken Apple to become the fourth largest smartphone retailer in China in terms of sales. This is attributed to their focus on offline sales. The proposed IPO of Xiaomi comes at a time when Chinese tech companies have had successful offerings over the last few months.
2018 will be graced by lots of IPOs with some expected ones such as Meituan-Dianping, an online local services group that has a market value of $30 billion and Lufax, a wealth management platform with a market value of $18 billion.
The founder of Xiaomi Lei Jun back previously stated that company will not go public until 2025, but its bullish run in the stock market and other factors will bring the offering date closer.
It is expected that the company would choose either Hong Kong or the United States as its listing venue according to the sources.
