Sci-tech

Phone maker Xiaomi falls then rises in Hong Kong debut

Phone maker Xiaomi falls then rises in Hong Kong debut”

Chinese tech giant Xiaomi stumbled on its Hong Kong debut on Monday, falling by more than 5% before recovering to close at HK$16.80 (US$2.14).

The lackluster start came after Xiaomi priced its IPO at the low end of an expected range, giving the company a valuation of $54 billion.

These include a US$4 billion deal from online food delivery-to-ticketing services platform Meituan Dianping and an up to US$10 billion IPO from China Tower, the world's biggest mobile tower operator, Reuters reported.

Xiaomi's IPO comes days after the U.S. and China began a trade war that has seen each nation imposes billions in tariffs on the other. The main Hong Kong stock market index ended 1.3 percent higher.

"Other IPO candidates will rush to Hong Kong to list before the market sentiment shifts".

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.

China's Xiaomi, the world's fifth biggest seller of smartphones, made an underwhelming public debut after it hit the Hong Kong Stock Exchange amid concerns around an ongoing trade war between the US and China.

Typically companies are valued on a multiple of profits or sales.

Xiaomi's Founder, Chairman and CEO Lei Jun (right) and Chew Shou Zi, senior vice president and chief financial officer gesture during the listing ceremony at the Hong Kong Stock Exchange in Hong Kong on July 9, 2018.

The company, which makes phones to rival Apple's iPhone, had hoped to hit a valuation of $100bn in the float, but is now valued at around $53bn.

Xiaomi sold 2.18 billion shares in its IPO, 1.4 billion of which were new shares.



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