After announcing its plans to launch an initial public offering of its shares next month a couple of weeks ago, China-based electronics company Xiaomi (HK:XMGP) is reportedly aiming for a June 7 date for its IPO which is set to raise $10 billion for the valuation of the company.
The company, which attracted a lot of attention in the past couple of years due to its products, is known for having high specifications and quality at a low price point compared to others of those available in the market. Xiaomi has then been known to be one of the top players in the smartphone business not just in China but all over the world as well.
An average Xiaomi device is sold at around $138.40 significantly lower to that of Apple (NASDAQ:AAPL) which is sold at around $600 last year and Samsung’s devices sold starting at $200 for its affordable line. The company’s premium line, on the other hand, is being sold by as much as $500 which is half of Apple’s iPhone X starting price of $999.
Xiaomi, which was reported to have arrived at the decision to launch its own IPO, was due to the changes in Britain policies recently, which will now allow more companies to list shares from different classes in the city.
In 2017, the company posted around 114 billion yuan in its revenue which represents a year over year growth of 67% in 2017 while its net loss was at around 43.9 billion yuan during the same year. This is lower than its profits of 491.6 million during the previous year.
According to the company, the changes in its profits are attributable to the issuance of preferred shares to investors. The company then stated that its operating profit has risen over the last couple of years.
Xiaomi’s major revenue continues to come from its smartphone business which comprises 70% of the company’s overall revenue. Products of the company falling under the internet of things and lifestyle section showed a rise in its share of revenue to 20.5% most recently from 13% from the prior year.
Majority of the company’s revenue still comes from its sales from China with 72% while 28% of its revenues come from various parts of the world. Recently, it expanded in India where another smartphone company Samsung (KS:005930) is known for its wide presence in the country where its products have gained popularity.
The company which is currently fourth in the smartphone market based on market share was able to report more than 91 million smartphones sold last year as stated in its IPO filing.