Xiaomi shares sharply lower in its debut on the Hong Kong market – Print

The Chinese smartphone maker and the connected Xiaomi device debuted in the Hong Kong market yesterday, with the first trading day being bad for the securities of the company. company
According to Reuters, a "Xiaomi" share ended yesterday with a price of $ 16.80 in Hong Kong, after reaching a minimum of $ 16 HK in the morning, more than 6% less that the price offered Initial Public HK $ 17.
"Xiaomi", the fourth largest smartphone maker in the world, attracted $ 4.72 billion at the end of June, citing the Hong Kong stock exchange among investors who have subscribed to the offer, including billionaire George. Soros, according to sources cited by Bloomberg. This was the biggest list of a technology company in the past four years.
The smartphone maker sold 2.18 billion shares, and at the price of 17 HK dollars mentioned above, "Xiaomi" had a market value of 54 billion, half compared to the $ 100 billion capitalization initially targeted.
The list came, however, in a moment of tension, when a trade war between China and the United States was triggered by mutual duty. After yesterday's fall of Xiaomi shares, the company's capitalization reached $ 53.3 billion. In the aforementioned trade war, the decline in Xiaomi shares was expected, analysts said.
Asked about the decline in stock prices, "Xiaomi", the general manager of the Hong Kong Stock Exchange Charles Li said that "the market should not have a point of view". He added: "The stock market is always a place open to all, and if someone does not like the price, he can stay away."
In June, "Xiaomi" recorded a net loss of 7 billion yuan (1.09 billion US dollars) for the first quarter of 2018, compared to a negative 43.89 billion yuan in 2017. Excluding some exceptional items, Xiaomi achieved net profit of 1.04 billion yuan between January and March 2018, compared with 3.9 billion yuan for the year 2017.
The company's smartphone shipments increased 88% driven by strong international demand, which pushed Xiaomi's sales to $ 34 billion ($ 5.3 billion) in the first quarter. In 2017, the company achieved a turnover of 114.6 billion yuan.

Alina Vasiescu

In addition to smartphones, Xiaomi produces devices and internet gadgets such as air purifiers and rice cookers, but most of the profit (60%) is generated by Internet services.