Sources say Xiaomi set for IPO in Hong Kong

Xiaomi, a Beijing-based electronics and software company, is believed to be preparing for an IPO, as the Hong Kong Stock Exchange has adopted the weighted voting rights, Yicai.com reported.

An anonymous source in a foreign investment bank told Yicai.com that the management at Xiaomi met several investment banks in Hong Kong over the Christmas holidays and the company is expected to pick its sponsor and underwriter soon.

The source said the Hong Kong stock market is currently very much sought after by technology companies, partly because of the reform of its IPO listing system.

The HKEx has replaced its “one share, one vote” principle, and allows innovative companies with the weighted voting rights to be listed on the Main Board.

Huang Weibang, corporate account executive partner at PwC, thinks the reform will attract more “new economy” companies in mainland China to come to the market in Hong Kong.

It is estimated that “new economy” companies such as Xiaomi will account for about 40% of the total funds raised via IPO in Hong Kong.

(ASIA TIMES)