China-based smartphone maker Xiaomi filed for an initial public offering in Hong Kong today that the South China Morning Post reported will be $10bn in size.
Xiaomi, which counts mobile chipmaker Qualcomm and the Nokia-backed NGP Capital among its investors, did not reveal its target for the offering or its proposed valuation in the filing, but bankers familiar with the plan told the Post the figure along with a proposed valuation of $100bn.
Founded in 2010, Xiaomi is bets known for its affordable smartphones, but it produces a range of electronics including laptops, televisions, wearables and smart home devices, all of which are connected to a wider internet-of-things ecosystem it oversees.
The company made a RMB43.9bn ($6.9bn at current rates) net loss in 2017, down from a slight profit the year before, according to the filing, mainly due to preferred share issues, while increasing its revenue 68% year on year to almost RMB115bn ($18bn).
Xiaomi has raised in funding, most recently securing $1.1bn from All-Stars Investment, DST Global, the Singaporean state-owned GIC, Hopu Fund and Yunfeng Capital at a $45bn valuation in 2014.
Undisclosed investors supplied $216m for the company at a $4bn valuation in 2012, before closing an undisclosed amount of funding at a $10bn valuation the following year.
MorningSide Venture Capital, Qiming Venture Partners and IDG Capital provided an initial $41m in series A funding in 2010, before returning for a $90m series B in 2011 featuring Qualcomm and Singaporean government-owned Temasek.
The company has also received debt financing, agreeing a three-year, $1bn syndicated loan agreement with 18 banks in July 2017, three years after forming a similar deal with 29 banks.
Qualcomm owns a 0.09% share of Xiaomi according to the filing. NGP has not revealed when it invested but it holds just over 495,000 shares equating to a 0.02% stake.
Xiaomi’s largest shareholders are its founders and executives but its major investors include Morningside (17.5%), Apoltetto China (7%) and Qiming (3.9%).
– Photo courtesy of Xiaomi.