Xiaomi faces a reality check in its closely watched IPO
Summary
Chinese smartphone maker Xiaomi is ready to put its business to the verdict of investors with an IPO in Hong Kong, but a disappointing pricing and a listing delay in mainland China are casting a cloud over its debut.China came up with the idea for CDRs as a vehicle to entice the country’s technology giants — many having listed overseas — to offer a form of equity in the domestic stock markets, allowing local investors to get involved in the sector’s growth.Lei Jun, Xiaomi’s founder, chairman and CEO, in an open letter included in the IPO prospectus released last month, said Xiaomi sought to be the “coolest” and manufacture “amazing products,” calling it an “innovation-driven internet company.”And while its phones have received positive reviews and its “Internet of Things” platform of more than 100 million connected devices is popular, Xiaomi’s business is largely driven by its home market and fast growth in India .“The key question for Xiaomi is how fast they can change their business model to target something more high revenue,” Kitty Fok, managing director for consultant IDC in China, told CNBC.