China-based smart home devices manufacturer Viomi Technology filed for a $150m initial public offering on Tuesday that will provide an exit for smartphone producer Xiaomi.
Founded in 2014, Viomi Technology has created an internet of things platform that powers an ecosystem of home appliances such as dishwashers, refrigerators and water purifiers. The devices boast features such as voice commands and the ability to play music.
Viomi will use the proceeds to pay for research and development, to bolster sales and marketing activities, to potentially conduct investments and acquisitions and for general corporate purposes.
Xiaomi currently owns a 19.5% stake in Viomi through investment subsidiary Red Better, while Shunwei Capital holds 20.5% and Sequoia Capital China retains 6.3%. The company’s largest shareholder is chief executive and chairman Xiaopeng Chen with 41.3%.
Morgan Stanley and China International Capital Corporation Hong Kong Securities are serving as joint bookrunning managers for the proposed offering.