Chinese tech giant Xiaomi on May 3 officially submitted its IPO application to Hong Kong exchange with its dual-class shareholding structure.
It has been the first applicant with dual-class shareholding structure since Hong Kong Exchange enacted revised bourse rules on April 30 which allows companies with dual-class shareholding structures and biotech firms with no revenue to apply for listing.
According to Xiaomi's application, its shareholding structure will comprise class-A shares and class-B shares.
Lei Jun, chairman and founder of Xiaomi, said in an open letter attached to the application files that his company is not only a smart-phone maker, but also a player with intelligent hardware connected by Internet of Things (IOT) and driven by innovations.
Cheng Shi, Chief Economist of ICBC International Research Limited, said that Xiaomi's official submission of its IPO application to Hong Kong exchange set a milestone after the new listing rule has been put into practice.
Xiaomi's going public in Hong Kong may open up the development of Chinese mainland's new economy and Hong Kong's capital market, which is a win-win situation, Cheng added.
Hong Hao, Head of Research of Bank of Communications (International), said that the size of Xiaomi's IPO will have a certain impact on the capital market.
Xiaomi's value is about $100 billion, making it one of the largest technology firm in China. As the liquidity is tightening, it may be difficult for the market to digest such a gigantic IPO, he said.
In 2017, Xiaomi's revenue was 114.62 billion yuan (about $18.33 billion), up 67.5 percent from 2016.
(Xinhua News Agency May 3, 2018)