Home » Tech

Smartphone maker Xiaomi's weak Hong Kong debut casts shadow on tech listings

11 July, 2018, 12:44 | Author: Tara Roberts
  • Chinese Smartphone Maker Xiaomi Falls in Hong Kong Trading Debut

Aside from global market concerns, investors are said to have been unsure of Xiaomi's ecosystem story.

The first quotation was 16.6 Hong Kong dollars, against 17 for the IPO. Even though much of the company's revenue comes from smartphones sales, Xiaomi has pinned its hope on internet services to account for most of the profit in the future.

Founded in 2010 by entrepreneur Lei Jun, Xiaomi has grown from a start-up in Zhongguancun, which is known as China's "Silicon Valley", to become the world's fourth-biggest smartphone vendor at the end of a year ago, according to International Data Corp.

Xiaomi's IPO raised $4.7 billion at a valuation of about $54 billion, far lower than the big numbers that had been reported earlier in the year.

Stocks in Hong Kong and Shanghai have taken heavy hits.

The weak pricing values the firm, which also makes internet-connected home appliances and gadgets, at about $54 billion, nearly half its original US$100 billion ambition earlier this year. "It's open to everybody.If you don't like the price, you can stay away". Apple is trading at 16 times earnings and Chinese social media giant Tencent is trading at 36 times.

Warframe port on its way to Nintendo Switch
Warframe is a fast-paced cooperative shooter, now available for PlayStation 4, PC, and Xbox One. No release date information was shared, unfortunately.

Analysts say Hong Kong's technology listings have struggled in recent months, deflating investor interest, while escalating trade tensions have made it a bad time to launch an IPO.

Xiaomi had been expected to raise up to $10 billion, split between its Hong Kong and a mainland offering.

Xiaomi is one of the world's most hotly anticipated stock market listings, having risen to prominence in developing markets, such as China.

"The debut has been pretty solid given the headwinds they've faced coming in, including the size of the deal, the newness of what they're trying to do, CDRs (Chinese depositary receipts), dual-share class voting rights and trade wars".

Xiaomi's lukewarm showing marks a blow for a smartphone maker with designs on expanding its global footprint and transforming from a low-margin hardware company into an Internet services player in the mold of Apple Inc. The company is also making waves in Europe, where after less than two years in the market, it has become the fourth biggest smartphone seller.

Recommended:



Popular

ECP postpones election in PK-78 after Peshawar blast
The party has been targeted by Islamist militants in the past over its vocal opposition to extremist groups like the Taliban . Earlier, Pakistan's military warned of security threats in the run-up to parliamentary elections scheduled for July 25.

Hurricane Chris forms in Atlantic Ocean
Chris was forecasted to begin weakening by Thursday, and become a strong post-tropical cyclone by Thursday night or early Friday. Although Hurricane Chris is headed towards Canada, it will still create severe weather for those on the U.S.

Pogba dedicates France win to Thai cave survivors
When I played against him (in the Champions League in February 2017) he had played only 10 matches and I didn't know him. England has not been as far as the semi-finals since they last hosted the tournament in 1966.

Sixers unwilling to spend too much for Kawhi Leonard
According to Bontemps, the Philadelphia 76ers have consistently remained atop the list of teams expected to land Leonard . He was clearly a favorite for the team and years later, he could be in the mix yet again.

Croatia star Modric expects a tough game against a 'strong' England
Harry Kane has to lead the group from the front, and now has a great chance of ending the tournament as the golden boot victor . England also have the World Cup's top-scorer in Harry Kane , who has six to his name so far.

Apple iOS 11.4.1 arrives with USB Restricted Mode
It operates like this: if an iPhone or iPad is not unlocked after one hour, data access through the Lightning port will shut down. At first we thought we would have to wait until iOS 12 this fall to see this feature, but here it is.

Boris Johnson quits as UK's May faces mounting Brexit crisis
Everything she said, "Brexit means Brexit", "we must leave the customs union", she has given away. If Davis's resignation rattled May, Johnson's shook the foundations of her government.

Microsoft announces entry-level Surface Go
The existing Surface Pen works with this device and you can opt for the Type Cover at $99 or a Signature Type Cover at $129.99. For one, it's more versatile than the latest generation of iPads, especially with the track pad in the optional keyboard.

Cave rescue hailed as Thailand's 'mission impossible'
The youth soccer team rescued from a cave in Thailand will be unable to accept FIFA's invitation to attend the World Cup final. British divers found them grouped together in complete darkness on a muddy bank several kilometres inside the cave on Monday.

Meghan Markle Goes for Green at Prince Louis’ Christening
Meghan Markle wore a knee-length forest green Givenchy skirt and blouse as Prince Harry wore a classic suit earlier in the day.