Daily Management Review

Morgan Stanley, Goldman Sachs to support Xiaomi's IPO


01/15/2018


Chinese company Xiaomi has chosen Citic Securities, Goldman Sachs and Morgan Stanley as partners and sponsors to help implement the first public sale of its securities.



Kai Hendry via flickr
Kai Hendry via flickr
A little later, Credit Suisse, Deutsche Bank, JP Morgan and two other Chinese banks will also join the process.

Xiaomi, which in 2014 was estimated at $ 45 billion, can hold one of the largest IPOs in history after Alibaba. During this event, the estimated value of the company, according to various experts, can range from $ 100 billion to $ 200 billion.

In December 2017, Bloomberg reported that during the first public offering, Xiaomi's asessment could amount to $ 50 billion. Investment banks are not sure that Xiaomi will be able to achieve this amount, although in 2014 Xiaomi held a round of financing, during which the company was estimated at $ 46 billion.

Xiaomi could decide to enter the exchange on the background of a successful expansion. So, the company caught up with rival Samsung Electronics Co on the market in India, and Xiaomi takes the 5th place in terms of production of smartphones in the world. Further expansion will require significant funds, and an IPO is just the way.

After several difficult quarters, when the financial results of the company were declining due to tightening competition from other Chinese companies and weakening, Xiaomi in the II quarter increased deliveries by 70% compared to the previous period. This happened after the vendor stopped selling its products exclusively through the Internet and began to open ordinary stores.

The company’s head Lei Jun is so confident in the new strategy that he again decided to predict the company's results: sales of 100 billion yuan ($ 14.7 billion) in 2017 and the delivery of 100 million smartphones in the current one. In addition, the CEO of Xiaomi said that the company has produced 85 million devices that have a connection to the Internet.

source: bloomberg.com






Science & Technology

Fast Company: Apple isn't the most innovative anymore

U.S. Space Program Could Be Delayed Due To SpaceX, Boeing Design Risks: Reuters

What trends will be affecting the health sector in the coming years?

Deloitte identifies main cyber threats for power industry

Zenuity To Take Self Driving Car Road Test In Sweden With Permission

Researchers: Half of Facebook users is fake

Amazon’s Ring gets in a privacy scandal

Facebook Is Creating A Stablecoin For Its WhatsApp Users

IBM offers to use the first quantum computer

Passport Numbers Of 5 Million Customers Hacked: Concedes Marriott

World Politics

World & Politics

AirHelp expects up to 33 th of cancellations and flight delays per day all over the world in 2019

Far-right and Catalonia: New elections in Spain

Trump is losing rating because of shutdown

Hanoi, Vietnam Chosen As Place For 2nd Summit Between Trump And Kim Jong-Un

US, China to hold new negotiations in Beijing

Human Rights Not To Be Dissociated From Stability, Macron Tells Sisi

Brexit Hijack Is Not The Parliament’s Right

Macedonia ignites political crisis in Greece