Xiaomi to go public? Company has current valuation of $46 billion

Xiaomi to go public? Company has current valuation of $46 billion
Xiaomi has been sizzling hot. The company more than tripled its shipments of smartphones last year, and in the latest round of financing the manufacturer was valued at $46 billion. That makes the company ripe for an IPO and rumors are circulating about a public offering on the U.S. or Hong Kong markets. The current speculation has Xiaomi listing its shares on whichever market offers them the highest valuation. 

According to those close to the situation, Xiaomi has been approached by investment bankers about going public. Despite the high valuation, Wall Streeters say it is unlikely that the company would be able to break the record set by Alibaba for the largest IPO in history. The Chinese online retailer raised $25 billion when it went public in New York last year.

Xiaomi is holding a big press conference next Thursday in San Francisco. The company could be ready to finally start offering its handsets in the U.S. At the same time, there is the possibility that Xiaomi announces an IPO. Going public would increase brand awareness in the U.S. and would also allow CEO Lei Jun to cash out some of his 70% stake in the company he founded in 2010. Back then, he said that Xiaomi would not be ready to go public for five years. This April will mark five years since Xiaomi started operations. You do the math.

source: WantChinaTimes via AndroidAuthority

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10 Comments

1. Tritinum

Posts: 471; Member since: May 06, 2014

wasn't expecting that, damn.

2. NexusX

Posts: 613; Member since: May 16, 2013

46billion for a company that can only sell handsets for thin margins in countries where patents don't exist?

3. MarquiX unregistered

Xiaomi in the U.S.? oOo.... Might hold out on buying a phone to see where this goes. *Waits*..... Big Manufactures like LG, Samsung, Apple etc, need to look out.

4. jove39

Posts: 2149; Member since: Oct 18, 2011

People can give valuation all they want...but actual investors will look for profitable business...and xiaomi barely turn up profit.

6. cezarepc

Posts: 718; Member since: Nov 23, 2012

Once they start putting up new fabs they'll cut operating costs. If they can keep the #1 position in China they're in position to make decent profits. Remember, Amazon operated on near-zero profit for years in it's effort to chase adoption and growth.

7. NexusX

Posts: 613; Member since: May 16, 2013

first, smartphone industry is extremely competitive in china. Xiaomi is not the only chinese brand selling cheap phones with good specs. Xiaomi latest headsets are priced at over $500, that is expensive for a chinese phone. it's obvious the new price tag reflects their operating costs (marketing, R&D, need to broaden distribution channels, quality control to meet high demand, costs involved in operating in other countries, regulatory fees, legal fees, etc and costs of securing their contracts for the latest components have gone up. This is usually the case with large corporations which is the reason why their products are usually more expensive. So operating costs would most likely go up in the future for Xiaomi, if they need come up with something to differentiate them from hundreds of other android phone makers. By the way, amazon is still operating on near-zero profit, and nobody knows how deep the hole gets

8. Commentator

Posts: 3723; Member since: Aug 16, 2011

What does Amazon have to do with this?

10. mixedfish

Posts: 1570; Member since: Nov 17, 2013

Yes selling phones at near loss is not a business model, once they miss earning estimates they will be saved in the stock price.

5. Starboy

Posts: 10; Member since: Feb 06, 2015

wow...70% stake.That's a whopping $32 Billion. He will make the forbes 100 list.

11. Settings

Posts: 2943; Member since: Jul 02, 2014

Joining the big leagues eh. Thats good. Now if the public offering is successful, investors will be the ones to dictate price, commercialize, R&D,and others in order to be relevant. It will be like everyone else from that point on, an affordable flagship will just be a distant memory.

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