Xiaomi IPO – First Day Sales Far From Impressive

In recent times, the most important thing to Xiaomi has been its Hong Kong listing and share sales. From the plan, the company will be officially listed in Hong Kong on July 9. Yesterday, Xiaomi updated its listing prospectus and also began to publicly offer shares. Xiaomi’s global share sale surpasses  2 billion shares and each share will have a maximum offer price of HK$22 ($2.80). From latest prospectus, Xiaomi Group’s is expected to make approximately HK$47.96 billion (just over $6 billion) from share sales. However, it appears that things are not going according to plan, at least for the first day of sales.

According to Hong Kong Daily report, Xiaomi’s first-day public subscription performance is very low. It is far below the record of nearly 100 billion yuan (about $15.2 billion) recorded by the China Daily Group on a single day. The report mentioned that Xiaomi only recorded 4.552 billion yuan (about $686 million) of marginal subscription on the first day, which was based on the 2.398 billion yuan (about $351 million) raised in Hong Kong public offerings. This is one of the coldest responses to IPO’s on the first day. It is expected that the response will significantly improve in the coming days. Apparently, a lot of people are reluctant to invest in the first day.