Chinese electronics company Xiaomi (HK:XMGP) has recently announced its plans to officially launch an initial public offering of its shares. The booming company filed for an IPO at the beginning of the month.
The listing of the Chinese company is set to raise around $10 billion and could set a valuation of around $100 billion for the company. While this has not been confirmed by the company, people close to the matter stated an estimate of the said number.
The said IPO is set to be one of the biggest seen in the last ten years and one of the largest since Alibaba's (NYSE:BABA) IPO launch in New York back in 2014.
Xiaomi is known for producing and selling smartphones since 2010 and has been tagged as a company selling smartphones and other devices offerings with high quality as well as high specifications at a considerately lower price point.
The company has since then been known to be one of the biggest smartphone players in China and eventually around the globe.
The decision of the company to push through with an IPO is reportedly led by the changes in Britain recently which is now allowing various share classes to list in the city.
Xiaomi had a net loss of 43.9 billion yuan or $6.9 billion last year from previously posting profits during the previous year. However, the company was able to post a surge of 67.5% to 114.5 billion yuan in 2017.
The company suffered back in 201 when its sales model was revamped by the company as it expanded in India where other smartphone companies such as Samsung (KS:005930) were known to be one of the biggest vendors.
Following the IPO, Xiaomi is also expected to issue Chinese depositary receipts as it goes public. Xiaomi co-founder and chief executive officer Lei Jun stated that the depositary receipts were an excellent idea adding that it was a great policy innovation. The plan has reportedly been approved by the China State Council while other details remain unclear.