Tech

Xiaomi prices IPO at $4.72bn, the bottom of its target range

Chinese smartphone maker Xiaomi has priced its Hong Kong public listing at the bottom of an indicative range at $4.72bn (£458m).

According to Reuters, sources close to the transaction have said Xiaomi finalised its share offering at HK$17 per share, choosing the base of its rumoured range of between $17 and $22.

The company is selling 2.18bn shares as part of the IPO, making it the largest public listing in technology since Alibaba's 2014 $25bn listing in New York.

Xiaomi was previously expected to raise as much as $6.1bn via its IPO earlier this week, with cornerstone investors taking up between 13 and 15 per cent of the shares on offer.

Read more: Xiaomi targets $6.1bn in Hong Kong IPO

At the beginning of June, the smartphone manufacturer posted a net loss of 7bn yuan (£800m).

The news of Xiaomi's lower pricing in Hong Kong has investors nervous for its later listing in China, which was delayed after a dispute between regulators and the company over the valuation of its China depository receipts.

Read more: Smartphone-maker Xiaomi to raise up to $3bn in mainland China

Xiaomi had been expected to raise up to $10bn across the two listings.

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