(Yicai Global) June 25 -- Electronics giant Xiaomi, which is scheduled to list in Hong Kong early next month, has temporarily scrapped plans to follow up the initial public offering with a mainland flotation.
"There is no plan" to issue Chinese Depositary Receipts for the time being, Xiaomi's Chief Financial Officer Shou Zi Chew said at a Hong Kong press briefing on June 23. The firm has been working hard to ensure the success of a CDR issuance, but has the regulator's backing to focus on the Hong Kong listing, he added.
The Beijing-based firm had been on track to become the first company to issue CDRs, which the Chinese government rolled out earlier this year to encourage new tech listings and bring home some of its largest new economy firms, like online retail behemoths Alibaba and JD.Com.
Xiaomi hopes to raise up to USD6.1 billion when it lists offshore around July 9, making it one of the world's biggest IPOs since Alibaba's USD21.8 billion haul in 2014. It plans to issue just under 2.2 billion shares priced between HKD17 (USD2.17) and HKD22, according to a prospectus update published on June 25.
The IPO will mark a big step forward not just for Xiaomi but also for the Hong Kong Stock Exchange, which will be floating a company with weighted voting rights for the first time. The dual-class structure allows the company's founders and figureheads to retain greater control of the company when selling shares publicly.
Editor: James Boynton