Chinese smartphone giant Xiaomi's listing falls flat

Chinese Smartphone Maker Xiaomi Falls in Hong Kong Trading Debut

Chinese Smartphone Maker Xiaomi Falls in Hong Kong Trading Debut

However, Xiaomi was still able to secure $4.7 billion Dollars from institutional investors.

Lei Jun (center), Xiaomi's CEO with senior vice president Li Wanqiang (left) and executive director Lin Bin (right) ahead of the company's IPO. The Chinese company suffered a number of setbacks during its IPO journey, from being forced to jettison a plan to sell Chinese depositary receipts in Shanghai to pricing its shares at the very bottom of a marketed range.

Chinese smartphone manufacturer and occasional Apple tribute act Xiaomi has made its debut on the Hong Kong Stock Exchange - officially making it the world's third largest phonemaker.

"Other IPO candidates will rush to Hong Kong to list before the market sentiment shifts".

Despite being one of the most anticipated Chinese technology public offerings this year, the group saw a disappointing valuation of US$54 billion, well below its ambitious US$100 billion target.

The company, which had hoped to be valued at $100bn (£75 billion) earlier this year, is now worth about $53bn, making it the third largest listed maker of mobile phones.

Typically companies are valued on a multiple of profits or sales. Most recent floats in Hong Kong dropped below IPO prices.

While the company makes more than 90 percent of its revenues from selling smartphones and other devices - through which it offers online services - it has pushed to be viewed as an internet-based company. "Without the innovation of Hong Kong's capital markets, we wouldn't get a chance to go public in Hong Kong", he said.

The company 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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