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Shares of Xiaomi fell after debut
Shares of Xiaomi Corp. fell by 6% after their debut in Hong Kong, Reuters reports. Xiaomi issued its shares at HK$17, hoping to get $4,72 billion. This is the largest technology IPO in four years.
Photo By Raysonho @ Open Grid Scheduler / Grid Engine - Own work, CC0, via Wikimedia Commons
Shares of Xiaomi Corp. fell by 6% after their debut in Hong Kong, Reuters reports.
Xiaomi issued its shares at HK$17, hoping to get $4,72 billion. This is the largest technology IPO in four years.
Shares dropped to HK$16 in the beginning of trade session, and then touched the initial price. By the middle of the day, shares fell to HK$16,88, while Hong Kong stock index rose 1,7%.
Xiaomi’s stocks listing takes place while investors’ concern over growing trade conflict between the US and China puts pressure on all world markets in recent weeks.
Xiaomi shares drop below initial price means that investors view company’s valuation too high compared with such giants as Tencent and Apple, experts think.
Xiaomi focuses on low-cost, high-performance smartphones as well as on online services. It is a leading vendor in India and is actively moves into European markets, including Spain and Russia.