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The first day of trading of the technological giant sobered the top of the group
(1965: 90000) Hong Kong The founder and CEO of Xiaomi Lei Jun was already nervous when he went to the Hong Kong Stock Exchange on Monday. He bravely smiled in a room with about 300 journalists, fans and traders and admitted to being "a thousand percent excited". He admitted that the trade war between China and the United States made the IPO more difficult. "Good businesses succeed, though," he said to the applause of those present.
Lei thanked investors like Li Ka-shing of CK Hutchinson and Jack Ma Yun of Alibaba. Among the top five investors, who acquired a total of $ 548 million worth of shares, include Chinese network operator China Mobile and the US chip maker Qualcomm.
But the beginning turned out to be difficult. Although the Hang Seng Hong Kong index rose 1.3% in the morning, Xiaomi opened the session at 2.4%, down 16.60 dollars from Hong Kong (2.11 dollars). The stock finished slightly above 16.80, but below the already low issue price of 17 HK dollars.
Market capitalization is $ 54.3 billion and the loan is limited to $ 3.1 billion. The values are therefore well below expectations
Apple in Chinese
Xiaomi, which means "millet" in Chinese, was founded in Beijing eight years ago by Lei, a computer scientist who studied computer science. Today, the company employs approximately 15,000 people, operates in 74 countries and is the world 's fourth largest maker of smartphones with a global market share of 8.4%.
Because of its clean, white design, Xiaomi is also called the "Chinese apple" by some observers. Similar to the American brand, it has its own technological ecosystem. Unlike Apple, Xiaomi manufactures not only PCs, laptops and mobile phones, but also household items such as pillows, rice cookers and air filters.
The main difference between the two brands, notes Jia Mo Jia, smartphone expert at the market research company Cbadys, are the target groups. "70% of the more than 300 million Xiaomi customers," he says, "do not have a strong purchasing power." While Apple covers the premium sector, Xiaomi mainly sells a series cheap called Redmi for $ 100 to $ 200 per device. Mobile phones in the so-called Mi series are up $ 600.
Analysts point to Xiaomi's low profit margin. Nevertheless, Jia Mo thinks that low values will benefit Xiaomi. "So the outlook for action is relatively good," he says.
According to the prospectus, Xiaomi plans to devote 40% of the proceeds of the IPO to the global expansion. Xiaomi plans to operate 2,000 stores worldwide by 2019, only about half of which are in China. Especially in India, the second largest smartphone market in the world, the company has been successful. In the fourth quarter of 2017, Xiaomi has surpbaded the former Samsung market leader and now occupies about 31% of the smartphone market.
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