Xiaomi files for IPO in Hong Kong expecting to raise $10 bn, the largest such listing by a Chinese tech company in four years

Smartphone and connected device maker Xiaomi filed for a Hong Kong initial public offering on 3 May, in what is expected to be one of the largest listings by a Chinese tech company in almost four years. [caption id=“attachment_4241869” align=“alignleft” width=“380”]  Xiaomi. Reuters.[/caption] The announcement came as the company posted revenue of CNY 114.62 billion ($18 billion) in 2017, up 67.5 percent against 2016. It also said it made a net loss of CNY 43.89 billion versus a profit of CNY 491.6 million in 2016. Operating profit for 2017 was CNY 12.22 billion, up from CNY 3.79 billion a year ago. Alongside smartphones, Xiaomi makes dozens of internet-connected home appliances and gadgets, including scooters, air purifiers and rice cookers, although it derives most of its profits from internet services. In 2017, Xiaomi had begun asking banks to pitch for an initial public offering and was floated to be the largest IPO listing of 2018. It has enlisted Goldman Sachs, CSLA and Morgan Stanley for its proposed listing. Meanwhile, Xiaomi’s founder Lei Jun had said that he intends to distribute the profits from its hardware business amongst Xiaomi’s users. How he would do that hasn’t yet been specified. With inputs from Reuters.