INSUBCONTINENT EXCLUSIVE:
HONG KONG: Chinese smartphone maker Xiaomi plans to raise up to 30per cent of its blockbuster $10 billion IPO by selling shares in mainland
China while offering the remainder in Hong Kong, people with knowledge of the matter told on Monday.
The company was previously expected to
raise as much as $10 billion from an initial public offering (IPO) of shares in Hong Kong only, in what is set to be the largest listing
globally in four years.
Xiaomi is likely to be among the first overseas-listing Chinese tech firms to seek a secondary listing in China
under plans for so-called Chinese depositary receipts (CDR), the people said
The CDR portion was likely to account for up 30per cent of its total fundraising size, they said.
The revised plans come as Xiaomi is hoping
to get approval from the Hong Kong stock exchange for its listing in the Asian financial hub later this month, three of the people said
The company plans to list in both Hong Kong and mainland China in early or mid-July, they said.
Xiaomi filed a prospectus for an IPO in Hong
Kong last month.
The company declined to comment further on its listing plans
The people declined to be identified because the deal details are still confidential.
Xiaomi plans to price its Hong Kong and China share
offerings on the same day, three of the people said
China's draft rules on the issuance of depositary receipts is open for consultation until June 3.
Listing in China by selling depositary
receipts will allow Chinese companies domiciled and listed overseas to make their shares available on the domestic market
Other firms planning such issuance include U.S.-listed Alibaba Group Holding Ltd and JD.com.
Citic Securities is leading Xiaomi's CDR issue,
Citic did not immediately respond to a request for comment.
CLSA, Goldman Sachs and Morgan Stanley are joint sponsors for the listing in
