Xiaomi shares fall below IPO price during Hong Kong debut

Xiaomi shares fall below IPO price during Hong Kong debut

It didn't provide a time line or details on the size of the proposed stock offering, but recent reports have suggested an IPO could value Tencent Music at more than $30 billion, putting it on a par with Spotify.

Shares of Chinese smartphone maker, Xiaomi, stumbled on their debut in Hong Kong on Monday, opening for trade down more than 2 percent and slipping as much as 5.88 percent during the session. Before Monday, Hong Kong's benchmark index had fallen more than 10% from early June.

By contrast, China Literature Ltd (0772.HK), the e-book arm of Chinese gaming and social media firm Tencent Holdings (0700.HK), late a year ago raised $1.1 billion for its Hong Kong IPO amid heavy demand, with the retail portion being 625 times oversubscribed.

While $50 billion isn't insignificant for a company many wrote off when sales flatlined in 2016, it's still barely grown from its $46 billion valuation from a 2014 fundraising round.

"The market environment is getting conservative".

Xiaomi Corp.'s market debut has failed to convince investors that it's capable of shedding a reliance on cheap phones and becoming an internet giant.

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Moore), Gloria (Selenis Leyva), Blanca (Laura Gomez) and Frieda (Dale Soules) all having to get used to their new surroundings. All of season six will be put on Netflix on 27 July, and naturally fans are absolutely buzzing.

Potential investors also struggled to view the company as the internet play it considers itself to be, rather than as a smartphone maker - the lower-margin business that now generates most of its profits, sources said. Such firms tend to carry far higher valuations than device makers.

It's quite a convoluted trip that began with Xiaomi's sudden plunge from grace shortly after hitting the $45 billion valuation at the start of 2015.

CEO Lei Jun acknowledged that "global capital markets are in constant flux" thanks to tensions between Beijing and the White House, which has seen trade tariffs levied on each side.

"The market is really concerned about how much growth Xiaomi can generate in 2019, and whether the company can deliver" on what it pitched to investors, said Hao Hong, chief strategist at Hong Kong-based broker BOCOM International. Goldman Sachs Group Inc., Morgan Stanley and CLSA Ltd. are leading Xiaomi's IPO as joint sponsors.

It is now the biggest smartphone vendor in India and is pushing into European markets including Spain and Russian Federation, though it has lost share in China recently to lower-cost rivals.

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