The stock opened at HK $16.60.
On Monday, July 9, Xiaomi’s initial public offering went live in Hong Kong. While this is a huge move for the company as it continues to grow, Xiaomi’s first day of trading wasn’t the most successful.
The IPO opened at a price of HK $16.60 (about $2.12 USD) per share which is a fair amount below the original IPO value of HK $17. The stock finally closed at HK $16.80 but dropped as low as HK $16 earlier in the day (a decrease of 5.88%).
Xiaomi first announced it was going public on May 3 and hoped to raise $10 billion USD to get to a total valuation of $100 million. After its first day on the market, Xiaomi ended up raising $3.05 billion USD.
Speaking to CNBC, Xiaomi’s Co-Founder and President Lin Bin said:
I think short-term stock price is mostly dictated by market conditions. What we will be doing is to focus on the long-term growth of our business.
As a public company, Xiaomi previously noted that it doesn’t plan on making any more than 5% when it comes to hardware sales. Instead, the majority of the revenue comes from Xiaomi’s various software services and features that are installed on its phones.
July 9, 2018 at 04:49AM