Chinese smartphone maker Xiaomi’s shares dropped nearly five per cent after the company debut its IPO at the Hong Kong Exchange at bottom end of its target range. Xiaomi Shares Dropped Nearly 5 Percent after Poor IPO Entrance
The estimation of the company was drop to $54.3 billion, which is about half of the $100 billion requiredd. Xiaomi’s IPO increased $4.7 billion at a survey of about $54.
Xiaomi Shares Dropped Nearly 5 Percent after Poor IPO Entrance
The Chinese smartphone company had earlier intended to increase $10 billion in an IPO that may have had valued the company at $100 billion.
According to a report:
With its fundraising trimmed, Xiaomi was surpassed by the $5.17 billion IPO in March by Siemens Healthiness on the Frankfurt stock exchange, ranking it as the world’s largest IPO.
Xiaomi CEO and co-founder Lei Jun said:
At this critical moment in Sino-US trade relations, the global capital markets are in constant flux. Although the macroeconomic conditions are far from ideal, we believe a great company can still rise to the challenge.
The company is currently at the fourth position in the smartphone market globally, behind Samsung, Apple and Huawei.
If the margin crosses five per cent, then we will find a way to return the excess above five per cent to our users.
Lei in April announced that the company will forever limit the net profit margin.
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