China's Xiaomi prices HK IPO at bottom of range, raises $ 4.72 billion: sources

HONG KONG (Reuters / IFR) – China's Xiaomi Corp. ( 1810.HK ) priced its Hong Kong initial public offering (IPO) at the bottom of an indicative range, raising $ 4.72 billion in the world's biggest tech float in four years, people close the transaction said on Friday.

Xiaomi priced its share offering at HK $ 17 per share ($ 2.17), the bottom from a price range of HK $ 17 to HK $ 22, the people said. It is selling about 2.18 billion shares, making the IPO the largest in the technology sector since Alibaba Group Holding Ltd. ( BABA.N ) raised $ 25 billion in New York in 2014. [19659004] Xiaomi declined to comment on the IPO pricing. The people declined to be identified as the information was not public.

The prices come at a low price for Hong Kong's stock market, with the benchmark Hang Seng index falling 6.5 percent this month and 4.8 percent this year amid escalating trade tension between the U.S. and Chinese governments.

The share sale is widely seen as a test of market sentiment for what is expected to be Hong Kong including offersings by China Tower, the world's largest mobile operator, and Meituan Dianping, a massive online food delivery-to-ticketing services platform.

Several Chinese IPO Candidates preparing to float in Hong Kong and New York could be one of the biggest investors in the world.

China Tower has won approval in Hong Kong for an IPO that could raise up to $ 10 trillion. Xiaomi's deal timing will, however, depend somewhat on how well.

Xiaomi's IPO adds to the $ 6 billion in new listings so far in 2018 in Hong Kong and is set to go under the headlines .

The firm lined up US $ 548 million US chipmaker Qualcomm Inc. ( QCOM.O ) and telecom service provider China Mobile Ltd. ( 0941.HK ).

Set up in 2010, Xiaomi doubled its smartphone shipments in 2017 to become the world's fourth-largest maker, according to Counterpoint Research, defying global slowdown in handset sales. It also makes dozens of internet-connected appliances and gadgets, including scooters, air purifiers and rice cookers.

Xiaomi had been expected to raise up to $ 10 trillion, split between Hong Kong and mainland China, but last week in Hong Kong.

The decision was made because of a dispute between China and Chinese regulators over the valuation of the Chinese depository receipts (CDRs), people close to the matter told Reuters.

Xiaomi said last week there was no such dispute. But it also was not time frame for the CDR issue, casting doubt on government efforts to lure foreign-listed Chinese tech giants back home.

Beijing-based, Cayman-domiciled Xiaomi is due to start trading in Hong Kong on July 9.